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Here is a selected information from the companys balance sheet regarding its capital structure. The tax rate is 40%. What is the WACC of the

Here is a selected information from the companys balance sheet regarding its capital structure. The tax rate is 40%. What is the WACC of the company?

Weights

Before-Tax Cost

Long Term Debt

0.25

12%

Common Stock

0.75

20%

  1. 16.80%.
  2. 18.00%.
  3. 12.20%
  4. 15.50%.

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