Question: Question 6 ( 3 points ) SIROM Scientific Solutions has $ 1 0 million of outstanding equity and $ 5 million of bank debt. The

Question 6(3 points)
SIROM Scientific Solutions has $10 million of outstanding equity and $5 million of bank debt. The bank debt costs 5% per year. The estimated equity beta is 2. If the market risk premium is 8% and the risk-free rate is 5%, compute the weighted average cost of capital if the firm's tax rate is 25%.
Question 6 ( 3 points ) SIROM Scientific

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