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Extra Co. maintains a debt-equity ratio of 1 and has a tax rate of 40 percent. The firm does not issue preferred stock. The cost

Extra Co. maintains a debt-equity ratio of 1 and has a tax rate of 40 percent. The firm does not issue preferred stock. The cost of equity is 12 percent and the before tax cost of debt is 15 percent. What is Abcos weighted average cost of capital?

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