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Assume your calculated r e for the project is 7.8%. The CFO also tells you that company's r d equals 3.0%. Remembering that the project
Assume your calculated re for the project is 7.8%. The CFO also tells you that company's rd equals 3.0%. Remembering that the project is financed by half debt and half equity, and that the company tax rate is 20%, what is the WACC for the project? Answer should include four digits to the right of the decimal point.
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