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A business is using a loan to finance 40% of the investment required for a project. The interest rate on the loan is 5%. The
A business is using a loan to finance 40% of the investment required for a project. The interest rate on the loan is 5%. The firm's required rate of return on equity is 30%. Their marginal tax rate is 25%. What is this firm's weighted average cost of capital (WACC)? O % WACC is 15.00% O WACC is 14.25% Not enough information is given O WACC is 19.50%
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