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An MNC has total assets of $100 million and debt of $35 million. The firms before-tax cost of debt is 10 percent, and its cost
An MNC has total assets of $100 million and debt of $35 million. The firms before-tax cost of debt is 10 percent, and its cost of financing with equity is 16 percent. The MNC has a corporate tax rate of 35 percent. What is this firms weighted average cost of capital?
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