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Elite Corporation has only debt as a part of its capital structure and comprises of only bank loans with an interest rate of 10%. The
Elite Corporation has only debt as a part of its capital structure and comprises of only bank loans with an interest rate of 10%. The marginal tax rate is 25%. What is the before tax WACC?
A. 10%
B. 2.5%
C. 7.5%
D. Impossible to calculate
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