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consider the following information for Giant Corp. UCFAT is a level perpetuity. firm value=$100m present value of tax benefits=$20m amount of debt= unknown interest rate

consider the following information for Giant Corp.

UCFAT is a level perpetuity.

firm value=$100m

present value of tax benefits=$20m

amount of debt= unknown

interest rate on debt= 10%

unlevered cost of equity= 20%

depreciation= $1m per year

new equipment= $1m per year

A) what is the WACC of the firm?

B) what is the tax rate?

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