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2. You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt and 60% common equity. The after-tax cost of
2. You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt and 60% common equity. The after-tax cost of debt is 6.00%, and the cost of equity is 12.75%. What is its WACC? a. 8.98% b. 9.26% c. 9.54% d. 9.83% e. 10.05%
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