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4. Consider the following Current Data for ABC Corp.: Market Value (in millions of $) Cost Debt Equity 16,000 26,000 7% 14% If ABC moves
4. Consider the following Current Data for ABC Corp.: Market Value (in millions of $) Cost Debt Equity 16,000 26,000 7% 14% If ABC moves to and maintains a debt-to-value (D/V) ratio of 50%, compute its WACC (after the change in its capital structure). Assume that the cost of debt increases to 8%. The tax rate is 35%. Use the three-step procedure
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