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Consider the follow information to calculate a firms WACC: - Debt-to-equity ratio: 1.2 - Before-tax cost of debt: 7% - RF=3% - Beta= 1.2 -

Consider the follow information to calculate a firms WACC:

  • - Debt-to-equity ratio: 1.2

  • - Before-tax cost of debt: 7%

  • - RF=3%

  • - Beta= 1.2

  • - Market return= 8%

  • - Tax rate= 40%

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