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Firm cost of debt is 7%, the beta of the firms equity is 1.2, risk-free rate is 2% and the expected return on the market
Firm cost of debt is 7%, the beta of the firms equity is 1.2, risk-free rate is 2% and the expected return on the market is 9%. The tax rate is 30%. If the firms capital structure consists of 30% debt/70% equity, what is the weighted average cost of capital?
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