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

Dill Computer's 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%. Dill's cost of equity, rs, is 15%. Dill Computer's tax rate is 40%. What is Dill Computer's weighted average cost of capital?

Group of answer choices

a. 9.6%

b. 10.3%

c. 10.5%

d. 11.4%

e. 12.1%

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