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For le monde corporation, the costs of various types of capital are as follows: CostWeight: Equity 12% 40% Preferred stock 10% 20% Debt 9% 40%
For le monde corporation, the costs of various types of capital are as follows:
CostWeight:
Equity 12% 40%
Preferred stock 10% 20%
Debt 9% 40%
Given the corporation tax rate of 30% the before tax weighted average cos of capital for Le Monde is lower than its after tax WACC.
True, False,Uncertain?
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