marley's pipe shops has found that its common equity capital shares have a beta equal to 1.5 while the risk-free return is 8 percent and the expected return on the market is 14 percent. its cost of debt financing is 12 percent. the firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt. what is the after-tax weighted average cost of capital for marley's, if it is subject to a 35 percent marginal tax rate?
