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Company T is a levered firm with debt of 25% and Equity of 75% and a cost ofEquity of 19.9% and debt cost of 10%.

Company T is a levered firm with debt of 25% and Equity of 75% and a cost ofEquity of 19.9% and debt cost of 10%. Tax rate is 40%.What is the levered firmsWACC?

a)16.425%

b)17.255%

c)18.004%

d)19.900%

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