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1 pts Use the following information to calculate the lowest WACC for ACME corporation, ACME corporation has an unlevered beta of 1.4. a tax rate
1 pts Use the following information to calculate the lowest WACC for ACME corporation, ACME corporation has an unlevered beta of 1.4. a tax rate of 20%, and needs 6 billion in total capital (debt plus equity). The risk-free rate is 3% and the equity premium is 6%. ACME company is considering TWO different debt levels: $600 million of debtv kter-tax cost of debt of 2.5% or $2 billion of debt with an after-tax cost of debt of 4.5%. What is the lowest possible WA 10.56% O 10.88% O 111.18% 11.34% 11.84%
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