Question: Wacky Warehouse Inc. is expected to have a weighted average cost of capital equal to 9%. The company has a debt-to-equity ratio equal to 2.

Wacky Warehouse Inc. is expected to have a weighted average cost of capital equal to 9%. The company has a debt-to-equity ratio equal to 2. Wacky Warehouse Incs after-tax cost of debt is equal to 5%. The cost of equity must be equal to: 11% 9% 22% 27%

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