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A firm has a capital structure with $75 million in equity and $75 million of debt. The cost of equity capital is 10% and the
A firm has a capital structure with $75 million in equity and $75 million of debt. The cost of equity capital is 10% and the pretax cost of debt is 7%. If the marginal tax rate of the firm is 35%, compute the weighted average cost of capital of the firm. O 7.6% O 7.3% O 8.0% O 8.4%
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