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A firm has $50m in debt and $50m in equity. Its WACC is 7% and its cost of debt is 4%. The tax rate is

A firm has $50m in debt and $50m in equity. Its WACC is 7% and its cost of debt is 4%. The tax rate is 25%. What will be the firms weighted average cost of capital if it changed its capital structure to $80m in debt and $27.5m in equity? O 5% O 6.5% O 7% O 5.4%

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