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7. A business is planning on financing 70% of an investment project with debt using a loan with an interest rate of 10%. The firm's

7. A business is planning on financing 70% of an investment project with debt using a loan with an interest rate of 10%. The firm's required rate of return on equity is 25%, and their marginal tax rate is 30%. What is this firm's weighted-average cost of capital (WACC)? A. WACC is equal to 12.4% B. WACC is equal to 14.5% C. WACC is equal to 19.6% D. WACC is equal to 20.5% (1 (1+r) poals 108251019 8

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