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ABC Inc has a target debt-equity ratio of 1.1. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent.
ABC Inc has a target debt-equity ratio of 1.1. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent?
12.53 percent
11.01 percent
11.76 percent
12.78 percent
13.11 percent
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