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Assume that Modigliani and Millers perfect capital markets assumptions hold and there are no corporate taxes. A companys cost of debt is 10%, its cost

Assume that Modigliani and Millers perfect capital markets assumptions hold and there are no corporate taxes. A companys cost of debt is 10%, its cost of equity is 25% and its debt-to-equity ratio is 25%.

Q5.1 Question 5, Part (a)

Calculate the companys weighted average cost of capital.Show your calculations.

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