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Calculating the weighted average cost of capital (WACC): If Metro Company has the following features, what is its WACC? A target capital structure of 65
Calculating the weighted average cost of capital (WACC): If Metro Company has the following features, what is its WACC?
A target capital structure of 65 percent common stock.
A target of 35 percent debt.
Cost of equity is 14 percent.
Cost of debt is 6 percent.
The tax rate is 35 percent.
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