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A firm has a tax rate of 30%, an annual cost of equity of 10%, and a yield to maturity on i bonds of

 

 

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A firm has a tax rate of 30%, an annual cost of equity of 10%, and a yield to maturity on i bonds of 6%. The firm's current capital structure is summarized below: Market value of common stock: $100,000,000 . Market value of bonds: $150,000,000 What is the firm's WACC? Provide quantitative support for your answer.

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