Wentworth's Five and Dime Store has a cost of equity of 11.9 percent. The company has an aftertax cost of debt of 5.2 percent, and the tax rate is 40 percent. If the company's debt-equity ratio is .79, what is the weighted average cost of capital? Multiple Choice 6.99% 8.03% 8.94% 7.57% 6.94%

Wentworth's Five and Dime Store has a cost of equity of 11.9 percent. The company has an aftertax cost of debt of 5.2 percent, and the tax rate is 40 percent. If the company's debt-equity ratio is .79, what is the weighted average cost of capital? Multiple Choice 6.99% 8.03% 8.94% 7.57% 6.94%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 7EB: Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of...

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Wentworth's Five and Dime Store has a cost of equity of 11.9 percent. The company has an aftertax cost of debt of 5.2 percent, and the tax rate is 40
percent. If the company's debt-equity ratio is .79, what is the weighted average cost of capital?
Multiple Choice
6.99%
8,03%
8.94%
7.57%
6.94%
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