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A company is all equity financed. The expected rate of return on the company's shares is 16%. Suppose the company issues debt, repurchases shares, and

image text in transcribed A company is all equity financed. The expected rate of return on the company's shares is 16%. Suppose the company issues debt, repurchases shares, and moves to a 25% debt-to-value ratio (D/(D+E)). What will the company's WACC be at the new capital structure, expressed as a percent? (XX)\%

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