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BCD Corp. maintains a constant debt-to-equity (D/E) ratio of 50% in perpetuity. Its cost of debt, rD, is 6% and its cost of equity, rE,
BCD Corp. maintains a constant debt-to-equity (D/E) ratio of 50% in perpetuity. Its cost of debt, rD, is 6% and its cost of equity, rE, is 12%. The corporate tax rate is 20%. What is its weighted average cost of capital (rWACC)? Group of answer choices
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