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$3 debt outstanding for every dollar of common stock, CSCO. Yield to Maturity = 5.46% Expected return = 4.43% Given a tax rate of 16%,

$3 debt outstanding for every dollar of common stock, CSCO.

Yield to Maturity = 5.46%

Expected return = 4.43%

Given a tax rate of 16%, compute the companys Weighted Average Cost of Capital. In your own words, interpret that number.

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