Question: The Damian Priest Store ( DPS ) has a cost of equity of 1 1 . 5 percent, a cost of debt of 6 .

The Damian Priest Store (DPS) has a cost of equity of 11.5 percent, a cost of debt of 6.1 percent, and a tax rate of 21 percent. If DPS has a market value debt-equity ratio of .50, what is the weighted average cost of capital for DPS?

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