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calculate the weighted average cost of capital (WACC) Weights of 40% debt and 60% common equity (no preferred equity) A 35% tax rate Cost of

calculate the weighted average cost of capital (WACC)

  • Weights of 40% debt and 60% common equity (no preferred equity)
  • A 35% tax rate
  • Cost of debt is 8%
  • Beta of the company is 1.5
  • Risk-free rate is 2%
  • Return on the market is 11%

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