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A firm uses $30 million of debt, $10 million of short-term debt, and $60 million of common equity to finance its assets. If the before-tax
A firm uses $30 million of debt, $10 million of short-term debt, and $60 million of common equity to finance its assets. If the before-tax cost of debt is 8%, after-tax cost of short-term debt is 6%, and the cost of common equity is 15%, calculate the weighted average cost of capital for the firm assuming a tax rate of 25%.
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