Nicks has a debt-equity of ratio of .6. The aftertax cost of debt is 7 percent and

Question:

Nick’s has a debt-equity of ratio of .6. The aftertax is 7 percent and the is 14 percent. The leveraged value of the firm is $24,160 and the tax rate is 34 percent. What is the firm’s weighted average cost of capital?
a. 8.37 percent
b. 9.63 percent
c. 10.48 percent
d. 11.38 percent

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...