Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital?
Target common equity weight: 60 percent
Target debt weight: 40 percent
Cost of equity: 13 percent
Cost of debt: 6 percent
Tax rate: 35 percent
A) WACC = 9.36 percent
B) WACC = 6.63 percent
C) WACC = 10.20 percent