Question: please answer within 20 mins! SIROM Scientific Solutions has $10 million of outstanding equity and $10 million of bank debt. The bank debt costs 4%
please answer within 20 mins!
SIROM Scientific Solutions has $10 million of outstanding equity and $10 million of bank debt. The bank debt costs 4% per year. The estimated equity beta is 2 market risk premium is 7% and the risk-free rate is 5%, compute the weighted average cost of capital if the firm's tax rate is 30%. if the OA. OB. OC. OD. 10.9% 11.99% 12.54% 11.45%
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