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A firms WACC is 19%, its required return on equity is 23%, and its after-tax cost of debt (i.e., effective cost after tax deductions) is
A firms WACC is 19%, its required return on equity is 23%, and its after-tax cost of debt (i.e., effective cost after tax deductions) is 6%. What proportion of the firms capital structure is debt, and what proportion is equity?
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