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kolits Corp. has a cost of equity of 11.6 percent and an aftertax cost of debt...

kolits Corp. has a cost of equity of 11.6 percent and an aftertax cost of debt of 4.38 percent. The company's balance sheet lists long-term debt of $330,000 and equity of $590,000. The company's bonds sell for 96.3 percent of par and market-to-book ratio is 2.74 times. If the company's tax rate is 40 percent, what is the WACC?

Multiple Choice

  • 10.41%

  • 11.06%

  • 10.13%

  • 9.01%

  • 9.57%

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