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An entity is contemplating various finance options for an upcoming project. It can access additional finance at 6% per annum. Economic modelling indicates that shareholders
An entity is contemplating various finance options for an upcoming project. It can access additional finance at 6% per annum. Economic modelling indicates that shareholders expect a minimum return of 13%.
Calculate, to two decimal places, the weighted average cost of capital (WACC) if the entity uses debt to finance 54% of this project.
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