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A firm uses only debt and equity in its capital structure. The firm's weight of equity is 3 5 percent. The firm's cost of equity

A firm uses only debt and equity in its capital structure. The firm's weight of equity is

35

percent. The firm's cost of equity is

14

percent and it has a tax rate of

21

percent. If the firm's WACC is

11

percent, what is the firm's before

-

tax cost of debt?

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