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c) Calculate the weighted average cost of capital for Limp Linguini Noodle Makers Inc. under the following conditions: *The capital structure is 40% debt and
c) Calculate the weighted average cost of capital for Limp Linguini Noodle Makers Inc. under the following conditions: *The capital structure is 40% debt and 60% equity. *The before-tax cost of debt (which includes flotation costs) is 20% and the firm is in the 40% tax bracket. *The firms beta is 1.7. *The risk-free rate is 7% and the market risk premium is 6%.
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