Question: Black Bear Bakery ( BBB ) has 4 0 % debt and 6 0 % common equity. The YTM on their bonds is 8 %

Black Bear Bakery (BBB) has 40% debt and 60% common equity. The YTM on their bonds is 8% and their tax rate is 30%. The required return on equity is 12%. What is their Weighted Average Cost of Capital?

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