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Common stock is 300,000, and long term debt is 200,000; common stock costs 16%, long term debt costs 8%, and the tax rate is 40%.
Common stock is 300,000, and long term debt is 200,000; common stock costs 16%, long term debt costs 8%, and the tax rate is 40%. What is WACC?
answer is 11.52%.
please show how to calculate.
I don't know what I am doing wrong. I cannot get correct answer. Thanks
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