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1. [10 points] A firm has a target debt-to-equity ratio of one. Its cost of equity equals 10 percent, the cost of debt is 6
1. [10 points] A firm has a target debt-to-equity ratio of one. Its cost of equity equals 10 percent, the cost of debt is 6 percent, and the tax rate is 40 percent. What is the WACC
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