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A firm has a cost of equity capital of 13% and a cost of debt capital of 5%. The firm is financed with $100 million
A firm has a cost of equity capital of 13% and a cost of debt capital of 5%. The firm is financed with $100 million in equity and $50 million in debt. The firm's tax rate is 27%. What is the firm's weighted average cost of capital? Ya. 10.886% b. 9.451% c. 9.883% d. 10.080% e. None of the above
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