Question: Following three problems Current Total debt $ 0 Tax rate 2 5 % Structure Beta 1 . 1 Target Wd 3 0 % Tax rate

Following three problems
Current Total debt $0 Tax rate 25%
Structure Beta 1.1
Target Wd 30% Tax rate 25%
Structure Ws 70%
Market Rf 4%
Information Market Risk Premium 9%
What is the target cost of capital?
Group of answer choices
23.06%
11.04%
13.16%
Not enough information

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