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A company has 4 0 % equity and 6 0 % debt. Return on equity is 8 % , while the return on debt is

A company has $40 %$ equity and $60 %$ debt. Return on equity is $8 %,$ while the return on debt is $5 % .$ If the tax rate is $30 %,$ determine the WACC of the firm.

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Question

A company has 4 0 % equity and 6 0 % debt. Return on equity is 8 % , while the return on debt is

A company has 40% equity and 60% debt. Return on equity is 8%, while the return on debt is 5%. If the tax rate is 30%, determine the WACC of the firm.

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A company has $40 %$ equity and $60 %$ debt. Return on equity is $8 %,$ while the return on debt is $5 % .$ If the tax rate is $30 %,$ determine the WACC of the firm.