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7. Weighted Average Cost of Capital (WACC) A firm has the following sources of external financing. The corporate tax rate 35%. What is its WACC?

7. Weighted Average Cost of Capital (WACC) A firm has the following sources of external financing. The corporate tax rate 35%. What is its WACC? (4 points)

Source:	equity	4- year loan	20-year bond
Cost:	15%	5%	10%
Value:	$30m	$20m	$10m

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