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A company has cost of debt of 4% and cost of equity of 12%. In this country, the corporate income tax rate is 40%. If
A company has cost of debt of 4% and cost of equity of 12%. In this country, the corporate income tax rate is 40%. If the company has target debt to total capital ratio of 50%, its WACC is closest to:
Select one:
a.
14.4%
b.
8.4%
c.
8.0%
d.
7.2%
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