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A firm that is in the 40% tax rate (t) bracket invests in $10,000,000 in new equipment. This investment is financed with $3,000,000 in equity

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A firm that is in the 40% tax rate (t) bracket invests in $10,000,000 in new equipment. This investment is financed with $3,000,000 in equity at an annual 15% cost of equity (ke) and $7,000,000 in debt at an annual 5% cost of debt (interest rate, kd).. This investment's Arditti-Levy method weighted (overall) average cost of capital is: O a. 4.9% O b.4.4% O c. 8.0% d. need to know the actual interest and principal payments on debt

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