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A firm has 30 million shares outstanding that are trading at $15 per share. The firm issued bonds whose market value is $150 million. The

A firm has 30 million shares outstanding that are trading at $15 per share. The firm issued bonds whose market value is $150 million. The corporate tax rate is 40%. Assuming the firm's cost of equity is 10% and its cost of debt is 5%: (a) What is the firm's Pre-tax WACC (Unlevered Cost of Equity, Return on Assets)? (5 points) (b) What is the firm's WACC? (5 points)

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