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10. Kan Industries capital structure consists of debt and common equity. It can issue debt at a YTM of 10%. The cost of issuing common

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10. Kan Industries capital structure consists of debt and common equity. It can issue debt at a YTM of 10%. The cost of issuing common stock is 15%. Kan's tax rate is 20%. If Kan plans to raise money 20% debt and 80% equity, what is its WACC? a. 12.5% b. 13.6% c. 14% d. 15%

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