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A company has target weights of 40% debt and 60% equity. Its after-tax cost of debt is 6% and its cost of equity is 13%.
A company has target weights of 40% debt and 60% equity. Its after-tax cost of debt is 6% and its cost of equity is 13%. What is the company's weighted average cost of capital?
19.0% | ||
7.0% | ||
10.2% | ||
8.8% |
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