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A company currently has cost of equity of 12.50% and cost of debt of 4.00%. Its WACC is 9.95%. To fund growth for the next

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A company currently has cost of equity of 12.50% and cost of debt of 4.00%. Its WACC is 9.95%. To fund growth for the next three years, the company is likely to do the following: a. Fund with 40% equity and 60% bonds Ob. 'Issue quity since they are very leveraged . Issue bonds since the cost of debt is relatively low O d. Not enough information to decide what to do

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