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A company currently has a 4 0 % debt / equity ratio. It estimates its cost of equity at 1 9 % , and pays

A company currently has a 40% debt/equity ratio. It estimates its cost of equity at 19%, and pays
interest of 9% on its debt. Given its cost of equity and borrowing costs, what would be the
companys weighted average cost of capital (or the cost of capital of the firms assets,
sometimes denoted by the variable )?

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