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Aceline Corporation is currently all-equity financed, with a cost of capital of 15% and a firm value of $10 million. The company is considering a

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Aceline Corporation is currently all-equity financed, with a cost of capital of 15% and a firm value of $10 million. The company is considering a $4 million debt issue at an 8% interest rate. The money raised will be used to repurchase shares. The company's marginal tax rate is 35%. According to the M&M Proposition, what is Aceline's weighted average cost of capital (WACC) after the debt issue? a. 13.09% b. 17.46% C. 13.16% d. 15.00% e. 16.70% O a. Ob. O c. O d. 0 e

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