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3. XYZ Corporation needs to raise capital to purchase new equipment. If following information is given, how much will be the WACC for XYZ Corporation?

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3. XYZ Corporation needs to raise capital to purchase new equipment. If following information is given, how much will be the WACC for XYZ Corporation? Tax rate Equity financing Cost of equity $200,000 10% Debt financing Before tax cost of debt $400,000 5% 30%

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