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Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis

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Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 34% and cost of 16.09% Preferred stock: 11% and cost of 12.89% Debt: 55% and cost of 10.9% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40%? b. 25%? c. 20%? d. 5%? e. 0%

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