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Byron Corporation's present capital structure, which is also its target capital structure, is 40 percent debt and 60 percent common equity. The component cost of
Byron Corporation's present capital structure, which is also its target capital structure, is 40 percent debt and 60 percent common equity. The component cost of equity is 18 percent. Byron can raise all the debt financing it needs at a yield of 14 percent. The firm's marginal tax rate is 40 percent. What is the weighted average cost of capital? Your Answer: Answer units
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