(Answered) A company has determined that its optimal capital structure

Finance

A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital.

rd = 6%

Tax rate = 40%

P0 = $25

Growth = 0%

D0 = $2.00

a. 6.0%

b. 6.2%

c. 7.0%

d. 7.2%

e. 8.0%

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