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Company Cs cost of equity and cost of debt are 12 and 8 percent, respectively. The current tax rate is 40 percent. Company C has

Company Cs cost of equity and cost of debt are 12 and 8 percent, respectively. The current tax rate is 40 percent. Company C has a debt-to-equity ratio of 50 percent. What is Company Cs weighted average cost of capital? How would it change if the company plans to reduce its debt-to-equity ratio to 40%, increase to 60%?

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