Swirlpool, Inc. has found that its cost of common equity is 15 percent, and its cost of debt is 9 percent. The firm is financed with 70 percent common shares and 30 percent debt. What is the after-tax weighted average cost of capital for Swirlpool, if it is subject to a 35 percent marginal tax rate? Access Excel sheet here O None of the Above O 12.72% 13.20 % 11.45% O 12.26%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Swirlpool, Inc. has found that its cost of common equity is 15 percent, and its cost of debt is 9 percent. The firm is financed with 70
percent common shares and 30 percent debt. What is the after-tax weighted average cost of capital for Swirlpool, if it is subject to a
35 percent marginal tax rate?
Access Excel sheet here
None of the Above
O 12.72%
13.20%
11.45%
O 12.26%
Transcribed Image Text:Swirlpool, Inc. has found that its cost of common equity is 15 percent, and its cost of debt is 9 percent. The firm is financed with 70 percent common shares and 30 percent debt. What is the after-tax weighted average cost of capital for Swirlpool, if it is subject to a 35 percent marginal tax rate? Access Excel sheet here None of the Above O 12.72% 13.20% 11.45% O 12.26%
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