Moorhead industries has a target capital structure of 60% de…
Moorhead industries has a target capital structure of 60% debt and 40% common equity. It has a before-tax cost of debt of 7%, and its marginal tax rate is 20%. Its cost of equity is 9%. What is the weighted average cost of capital? Indicate to the nearest tenth of a percentage (e.g., 10.2). Do not use the percentage sign