Kooche Company plans to invest $1,000,000 in projects next year. $700,000 will be provided through debt capital with a before tax cost of 7.3%. The remaining $300,000 will be provided through equity capital at a cost of 6.5%. Kooche's corporate tax rate is 40%. What is the weighted average cost of capital? (a) 5.02% (b) 6.50% (C) 7.06% (d) 13.80%

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