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A company is financed with only two sources of finance: debt and equity. It has a WACC of 8.5%, a pre-tax cost of debt of
A company is financed with only two sources of finance: debt and equity. It has a WACC of 8.5%, a pre-tax cost of debt of 5%, a cost of equity of 12%, and a marginal corporate income tax rate of 35%. What percent of the company is financed with equity? (Round to the closest answer)
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