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Business, 10.12.2019 02:31 viicborella

Delta lighting has 30,000 shares of common stock outstanding at a market price of $15.00 a share. this stock was originally issued at $31 per share. the firm also has a bond issue outstanding with a total face value of $280,000 which is selling for 86 percent of par. the cost of equity is 13 percent while the after-tax cost of debt is 6.9 percent. the firm has a beta of 1.48 and a tax rate of 30 percent. what is the weighted average cost of capital? a. 10.07 percentb. 10.87 percentc. 12.36 percentd. 13.29 percente. 13.47 percent

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Delta lighting has 30,000 shares of common stock outstanding at a market price of $15.00 a share. th...
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