Suppose, on another occasion, the companys treasurer ascertained that the expected cost of debt after tax was
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Suppose, on another occasion, the company’s treasurer ascertained that the expected cost of debt after tax was equal to 6%. Suppose also that the expected cost of equity was equal to 20%. The treasurer’s target debt-to-equity ratio for the company was equal to 0.8.
What is the company’s WACC?
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