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A $1,000,000 equipment investment is financed with $600,000 in debt at an annual 5% cost of debt (interest rate, k d ) and $400,000 in

A $1,000,000 equipment investment is financed with $600,000 in debt at an annual 5% cost of debt (interest rate, kd) and $400,000 in equity at an annual 10% cost of equity (ke). The tax rate (t) is 33.3%. This investments Arditti-Levy method weighted (overall) average cost of capital is:

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