Question: 4 pts D Question 1 Questions Al-A2 are based on the information that follows. to 9% and tos*15% are the capital cost components of debt

4 pts D Question 1 Questions Al-A2 are based on the information that follows. to 9% and tos*15% are the capital cost components of debt (pre-tax) and preferred stock. The firm's capital structure is comprised of Debt = $700, Preferred Stock-$300 and Common Equity-$1,000, WACC is 9.64%. The corporate tax rate is 40%. What is the cost of common equity? a) 12.00% b) 10.12% Id 10.98% Id) 11.00% le) 13.00% OB Oto e

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