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AEPL issues only common stock and bonds. The firm has a debt-equity ratio of 0.48. The cost of equity is 20.64 percent and the after-tax
AEPL issues only common stock and bonds. The firm has a debt-equity ratio of 0.48. The cost of equity is 20.64 percent and the after-tax cost of debt is 10.68 percent. The firm's tax rate is 30 percent? A. What is the capital structure weight of the firm's equity and debt? [6 marks] B. What is firm's WACC (weighted average cost of capital)? [4 marks] Show your working clearly and provide your answer to 2 decimal places
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