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firm a has a pre-tax cost of debt of 5%. the firm also has $10 mil in debt and $40 mil in equity. the firm's

firm a has a pre-tax cost of debt of 5%. the firm also has $10 mil in debt and $40 mil in equity. the firm's tax rate is 20% and an equity beta of 1. if the firm plans to issue $10 mil in debt next year, what will be its WACC after that issuance? assume the risk free rate is 2% and the market risk premium is 6%

a. 7.33%

b.5%

c.5.66%

d.9.47%

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