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Assume that Google's corporate tax rate is 20%. Also assume that Google's current equity cost of capital is 9.1%, that Google's debt holders require a
Assume that Google's corporate tax rate is 20%. Also assume that Google's current equity cost of capital is 9.1%, that Google's debt holders require a return of 3.9% (which corresponds to Google's pre-tax cost of debt), and that Google's debt to value ratio is 0.24. Then, Google's after-tax WACC in percent (rounded to two digits) is:
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