Goremann Corp (GC) has a total market value of $524 million. The market value of...
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Goremann Corp (GC) has a total market value of $524 million. The market value of equity is $300 million and the company carries debt valued at $224 million. The before-tax cost of debt is 9 percent and the cost of equity is estimated at 14 percent. The statutory company tax rate is 35 percent. What is the weighted-average cost of capital for the company closest to?
A.
11.63%.
B.
9.34%.
C.
10.52%.
D.
12.05%.
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