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Based solely on their current weighted average cost of capital, which company should pursue an investment opportunity with an expected return of 6%? Market

Based solely on their current weighted average cost of capital, which company should pursue an investment  Market Value of Equity Market Value of Debt Cost of Equity Cost of Debt Tax Rate Company A $400,000 $100,000

Based solely on their current weighted average cost of capital, which company should pursue an investment opportunity with an expected return of 6%? Market Value of Equity Market Value of Debt Cost of Equity Cost of Debt Tax Rate Company A $400,000 $100,000 9% 3% 35% Company B $800,000 $600,000 9% 4% 35%

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