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4. A company has $10 million of debt outstanding at book value. The debt is trading in the market at 90% of book value. The

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4. A company has $10 million of debt outstanding at book value. The debt is trading in the market at 90% of book value. The yield to maturity at current market prices is 12 percent. The 1 million shares are selling at $20 per share. The cost of equity is 19 percent, and the tax rate is 34%. The weighted average cost of capital of the company is

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