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A firm has a market value of equity of $30,000. It borrows $30,000 at 5%. If the return on equity is 20% and the tax

A firm has a market value of equity of $30,000. It borrows $30,000 at 5%. If the return on equity is 20% and the tax rate is 40%, what is the firms WACC?

	A.	8.3%
	B.	18.4%
	C.	12.5%
	D.	11.5%

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