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Given are the following data: Cost of debt = r D = 6.0%; Cost of equity = r E = 12.1%; Marginal tax rate =
Given are the following data: Cost of debt = rD = 6.0%; Cost of equity = rE = 12.1%; Marginal tax rate = 21%; and the firm has 50 percent debt and 50 percent equity. Calculate the after-tax weighted average cost of capital (WACC).
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9.0 percent
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8.42 percent
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5.9 percent
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7.1 percent
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