The felix filter corp maintains a debt-equity ratio of 6


The Felix Filter Corp. maintains a debt-equity ratio of .6. The cost of equity for Richardson Corp. is 16%, the cost of debt is 11% and the marginal tax rate is 30%. What is the weighted average cost of capital?

A. 8.38%

B. 11.02%

C. 12.89%

D. 14.12%

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Financial Management: The felix filter corp maintains a debt-equity ratio of 6
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