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A company has ordinary shares which have an associated cost of equity of 18%. It also has a before-tax cost of debt of 11%. The

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A company has ordinary shares which have an associated cost of equity of 18%. It also has a before-tax cost of debt of 11%. The company's target capital structure is 65% ordinary shares, and 35% debt, and the tax rate is currently 28%. The company's weighted average cost of capital is: (3 Marks) 96

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