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Firm ABC has a tax rate of 25%, $5M in debt and $15M in equity. Its opportunity cost of capital is 10%, and the opportunity
Firm ABC has a tax rate of 25%, $5M in debt and $15M in equity. Its opportunity cost of capital is 10%, and the opportunity cost of equity is 18%. What rate of return must the company earn on existing assets to meet the expectations of creditors and owners
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