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3. Calculate the WACC for a firm with a debt-equity ratio of 1.5. The debt pays 8 percent interest and the company has a 35

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3. Calculate the WACC for a firm with a debt-equity ratio of 1.5. The debt pays 8 percent interest and the company has a 35 percent tax rate. Go he company has a 35 percent tax rate. Government t-bills are currently returning 1.5% and the market risk premium is currently at 7%. This company has of 1.35. (4 marks)

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