Hi-Octane Oil Company has a debt-equity ratio of 0.25. The company uses no preferred stock in its

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Hi-Octane Oil Company has a debt-equity ratio of 0.25. The company uses no preferred stock in its capital structure. If the cost of equity is 14.4% and the after-tax cost of debt is 6.2%, what is the company's weighted average cost of capital?

a. 6.20

b. 8.25%

c. 12.35%

d. 12.76%

e. 14.4%

Posted Date: May 18, 2024 05:16 PM

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