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HNK Worldwide is a taxable corporation. It is currently an all equity firm that has 2,000 shares of stock outstanding with a market price of

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HNK Worldwide is a taxable corporation. It is currently an all equity firm that has 2,000 shares of stock outstanding with a market price of $30.12 a share. The tax rate is 35 percent. Its unlevered cost of equity is 8.0 percent. The firm is considering adding $60,000 of debt that pays 3 percent to its capital structure. The debt will be sold at par value. What will be the post-tax WACC after the capital restructuring? Select one: a. 12.4% b.7.3% c. 6.5% d. 5.9% e. 8.0%

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