Question: Dill Computers target capital structure is 50% debt and 50% equity. Dill has issued 12% coupon bonds. The current yield to maturity on these bonds

Dill Computers target capital structure is 50% debt and 50% equity. Dill has issued 12% coupon bonds. The current yield to maturity on these bonds is 10%. Dills cost of equity, r_s, is 15%. Dill Computers tax rate is 40%. What is Dill Computers weighted average cost of capital?

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