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Jemisen's firm has expected earnings before interest and taxes of $1,400. Its unlevered cost of capital...

Jemisen's firm has expected earnings before interest and taxes of $1,400. Its unlevered cost of capital is 13 percent and its tax rate is 34 percent. The firm has debt with both a book and a face value of $1,800. This debt has a 7 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?

A) 12.03 percent

B) 12.88 percent

C) 12.50 percent

D) 11.97 percent

E) 12.20 percent

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