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24. Running Deere firm is considering a target capital structure 45% debt and 55% equity. The cost of equity for an unlevered firm of Running

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24. Running Deere firm is considering a target capital structure 45% debt and 55% equity. The cost of equity for an unlevered firm of Running Deere is 12% and the before tax cost of new debt issued is constant at 8%. (a) Calculate the Weighted Average Cost of Capital (WACC) for the Levered Firm assuming the corporate tax rate is 40% (2 points)

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