What is the weighted average cost of capital after taxes for Moss Diet
What is the weighted average cost of capital after taxes for Moss Diet Centers if the target weights are 25% equity and 75% debt, and the costs of equity and after-tax debt are 15% and 12%, respectively? Assume the relevant tax rate is 20%.
A) 12.5%
B) 11.0%
C) 12.8%
D) 14.0%
E) 13.5%
ANSWER
C
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