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A company would like to figure out if a 10 -year project is worth it. The company is in the 25% income tax bracket. Here's
A company would like to figure out if a 10 -year project is worth it. The company is in the 25% income tax bracket. Here's what else is known: eighted (A) verage C.ost of Capital Even more information: The company would like to use the WACC approach to evaluate this levered project. According to this approach: RWACC=( Weight of levered equity )( Cost of levered equity )+(1TC)( Weight of debt )( Cost of debt ) In this formula, weight of levered equity = ,costofleveredequity= , TC= , weight of debt = ,andcostofdebt= Increase the decimal places in all intermediate steps to 6 or even more. The more the better! Only round your final numeric answers to TWO decimal places. The resulting RWACC=
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