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Calculate and explain the Weighted Average Cost of Capital (WACC) based on the details below. a. Market Value of Equity: $7M b. Market Value of

Calculate and explain the Weighted Average Cost of Capital (WACC) based on the details below.

a. Market Value of Equity: $7M

b. Market Value of Debt: $3M

c. Cost of equity 7%

d. Cost of debt: 5% e. Tax Rate: 32 (use .32 for calculation)

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