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Determine the weighted average cost of capital, given: Average expected borrowing rate-12% Tax rate-40% Risk free rate-396 Risk premium of the market-796 Beta 1.5 Market

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Determine the weighted average cost of capital, given: Average expected borrowing rate-12% Tax rate-40% Risk free rate-396 Risk premium of the market-796 Beta 1.5 Market value of equity $500 Book value of equity- $400 Market value of debt $200 Book value of debt $220

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