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A firm has a beta of 1.25 and a debt-equity ratio of 0.4 . The market rate of return is 12%, the tax rate is

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A firm has a beta of 1.25 and a debt-equity ratio of 0.4 . The market rate of return is 12%, the tax rate is 30% and the risk-free rate is 3%. The pretax cost of debt is 10%. What is the firms's wacc? a. 9.90% b. 11.35% c. 11.53% d. 12.66% e. Other: %

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