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1. Suppose a company facing a 21% tax rate has $200 million in debt outstanding at a rate of 5% and $150 million of equity

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1. Suppose a company facing a 21% tax rate has $200 million in debt outstanding at a rate of 5% and $150 million of equity with a required return of 9% in 2017 . In addition, EBIT is $10 million in 2017, and the company will continue to use the same percentage of its interest as it did in 2017 to reduce taxes. How much is the company's WACC for FCF valuation purposes? (5 points)

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