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5 pts Assume that your firm consists of Division 1 (40 percent of the firm) and Division 2 (60 percent of the firm). The capital

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5 pts Assume that your firm consists of Division 1 (40 percent of the firm) and Division 2 (60 percent of the firm). The capital structure for each of the divisions is the same as for the firm as a whole, 20.0 percent debt, at a before-tax cost of debt of 6.0 percent, and 80.0 percent equity (ie, D/E- 0.25). Also assume that the firm calculates the cost of equity for each division using a divisional beta, where Division 1 has an unlevered beta of 1.10, while Division 2 has an unlevered beta of 1.40. Finally assume that the risk-free rate is 4.0 percent and the expected return on the market is 14.0 percent. Given this information, determine the average corporate-wide WACC for this firm. Use a tax rate of 40%. 17.971% O 16.837% O 16.263% O 17.408% O 15.696%

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