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27. Nolevco is funded 100% through equity. The required rate of return to its equity is 15%. Alldebtco is funded 100% through debt; the interest
27. Nolevco is funded 100% through equity. The required rate of return to its equity is 15%. Alldebtco is funded 100% through debt; the interest rate on its debt is 6% and its tax rate is 20%. Suppose Nolevco and Alldebtco merge. After the merger, they have $5 million in debt and the market cap of their equity is $10 million. What will the WACC be for the combined company
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