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A company has a required return on equity of 16%, a yield to maturity of 6% on their bonds, and a tax rate of 35%.
A company has a required return on equity of 16%, a yield to maturity of 6% on their bonds, and a tax rate of 35%. If the companys WACC is 12%, what is the weight of bonds in the companys capital structure?
Select one:
a. 75%
b. 50%
c. 33%
d. 67%
e. 28%
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