Question: Dill Computer's target capital structure is 60% debt and 40% equity. Dill has issued 12% coupon bonds. The current yield to maturity on these bonds

Dill Computer's target capital structure is 60% debt and 40% equity.

Dill Computer's target capital structure is 60% debt and 40% 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? a. 9.6% b. 10.0% C. 10.3% d. 11.1% e. 15.0%

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