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SIROM Scientific Solutions has $10 million of outstanding equity and $5 million of bank debt. The… 1 answer below » 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 7% and the risk-free rate is 4%, compute the weighted average cost of capital if the firm’s tax rate is 30%. Question 1 options: A) 13.16% B) 13.52% C) 13.76% D) 14.21% Sep 17 2015 05:11 PM
