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ABC Corp is a leveraged company. Cost of equity: 12% Corporate Income Tax: 30% Before Tax Cost of Borrowing: 5% Debt to Equity Ratio: 1:1

ABC Corp is a leveraged company.

Cost of equity: 12%

Corporate Income Tax: 30%

Before Tax Cost of Borrowing: 5%

Debt to Equity Ratio: 1:1

WHAT IS THE WEIGHTED AVERAGE COST OF CAPITAL?

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