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CoffeeCarts has a cost of equity of 12%, a before-tax cost of debt of 5%, and is financed 80% with equity and 20% with debt.
CoffeeCarts has a cost of equity of 12%, a before-tax cost of debt of 5%, and is financed 80% with equity and 20% with debt. What is this firm's after-tax WACC, if the company's tax rate is 25%?
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
