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A US company has a current debt ratio of 0.4. Its cost of equity is 10% and its after-tax cost of debt is 4.5%. What

A US company has a current debt ratio of 0.4. Its cost of equity is 10% and its after-tax cost of debt is 4.5%. What is the company's WACC?

Question 44Answer

a.

7.4%

b.

7.8%

c.

8.4%

d.

8.2%

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