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TAFKAP Industries has 8 million shares of stock outstanding selling at $17 per share and an...

TAFKAP Industries has 8 million shares of stock outstanding selling at $17 per share and an issue of $20 million in 7.5 percent, annual coupon bonds with a maturity of 15 years, selling at 109 percent of par ($1,000). If TAFKAP's weighted average tax rate is 21% and its cost of equity is 12.5 percent, what is TAFKAP's WACC?

Multiple Choice 12.83 percent 11.49 percent 12.16 percent 11.02 percent

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