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Construction Company has the following amounts of interest-beaning debt and common equity capital: Financing Source Dollar Amount Short term loan 15200 000 Long term loan
Construction Company has the following amounts of interest-beaning debt and common equity capital: Financing Source Dollar Amount Short term loan 15200 000 Long term loan $200 000 Equity capital $600 000 Munich Company is in the 250 pe tax racket and the estimated cost of equity capital based on a risk-free rate of 795. a market risk premium of 89 and a systematic risk of 2.0. Calculate after tax WACC (Weighted Average Cost of Capital) for Munich
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