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Assume that the company has $1.2 billion in debt, its cost of debt capital (r d ) is 5%, it has $2 billion in equity,
Assume that the company has $1.2 billion in debt, its cost of debt capital (rd) is 5%, it has $2 billion in equity, and its cost of equity capital (re) is 7%. Compute the companys Weighted Average Cost of Capital.
12% | ||
2% | ||
6.25% | ||
10% |
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