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Given the following capital structure, what is the approximate weighted average cost of capital? The tax rate is 30%. Source of Financing Book Value Market
Given the following capital structure, what is the approximate weighted average cost of capital? The tax rate is 30%. Source of Financing Book Value Market value Cost of financing Bank Loan $1,000 $1,000 12% Bonds $600 $500 10% Equity $2,000 $2,500 8%
Question 9 options:
12.0%.
9.0%.
8.0
10.0%
. 6.0%.
11.0%.
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