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Assume the following facts about a firm's financing in the next year, and calculate the component cost of debt. Weighted average cost of capital =

Assume the following facts about a firm's financing in the next year, and calculate the component cost of debt. Weighted average cost of capital = 11.3% Proportion debt financing = 45% Proportion internal equity financing = 55% Cost of internal equity = 14.0% Cost of after-tax debt = ????? A) 7% B) 8% C) 9% D) 10%

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