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Company A is financed by 25% of debt and the rest of the company is financed by common equity. The company's before-tax cost of debt
Company A is financed by 25% of debt and the rest of the company is financed by common equity. The company's before-tax cost of debt is 3%, and its cost of equity is 12%. If the marginal tax rate is 30%, the company's weighted average cost of capital (WACC) is (Note: Write your answer as decimals with three decimal places. For example, if you answer is 8.7%, you should write 0.087 in the answer box. DO NOT write 8.7 in the box as you will be marked Wrong)
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