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Consider a firm with $73.07 in outstanding debt and $153.45 in equity. If the required return on debt is 4.161%, the required return on equity
Consider a firm with $73.07 in outstanding debt and $153.45 in equity. If the required return on debt is 4.161%, the required return on equity is 8.468%, and the firm's tax rate is 16%, find the firm's weighted-average cost of capital to four decimal places. Assume no preferred stock is issued. For example, 0.0456 for 4.56%, not 0.04 or 4.56.
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