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Company A estimates that it can increase its debt ratio to from20% to 50% at the current risk-free interest rate of 4%. What is the

Company A estimates that it can increase its debt ratio to from20% to 50% at the current risk-free interest rate of 4%. What is the weighted average capital cost(WACC) of Company A after borrowing when the debt level is 50%? Assume A's income tax rate is 25% and the average market rate of return is 14%.

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