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Assume that XYZ Corporation is a leveraged company with the following information: Kl= cost of equity capital for XYZ=13% i= before-tax borrowing cost =8% =

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Assume that XYZ Corporation is a leveraged company with the following information: Kl= cost of equity capital for XYZ=13% i= before-tax borrowing cost =8% = marginal corporate income tax rate =30% Calculate the debt-to-total-market-value ratio that would result in XYZ having a weighted average cost of capital of 9.3 percent. 35 percent 40 percent 45 percent 50 percent

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