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Callisto Contracting's expected operating income is $100,000 per year. Its cost of debt is 2.5%, the unlevered cost of capital is 5.8%, the cost of
Callisto Contracting's expected operating income is $100,000 per year. Its cost of debt is 2.5%, the unlevered cost of capital is 5.8%, the cost of equity is 7.8%, and the wacc is 4.1%. The corporate tax rate is 28%. What is the appropriate discount rate if the firm is using the weighted average cost of capital valuation method
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