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Goremann Corp (GC) has a total market value of $420 million. The market value of...

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Goremann Corp (GC) has a total market value of $420 million. The market value of equity is $270 million and the company carries debt valued at $150 million. The before-tax cost of debt is 7 percent and the cost of equity is estimated at 12 percent. The statutory company tax rate is 35 percent. What is the weighted-average cost of capital for the company closest to? O A. 12.05% O B.9.34% O C. 10.52% OD. 11.63%

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