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8 . What is the weighted average cost of capital for a firm that has 6 0 % equity and 4 0 % debt. The

8 .

What is the weighted average cost of capital for a firm that has

60 %

equity and

40 %

debt. The cost of selling new equity is

14 %

and the cost of selling new debt is

10 % .

The firm is in a

32 %

tax bracket.

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