Takeoka's Sushi to Go Has Estimated the Following Cost of Debt

question 15

Multiple Choice

Takeoka's Sushi To Go has estimated the following cost of debt before-tax) and cost of equity.
What is the cost of capital at Takeoka's optimal capital structure given the above information and a 40% effective tax rate?

• A)10.78%
• B)11.02%
• C)11.13%
• D)11.45%

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Definitions:

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