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Kan industires capital structure consists of debt and common equity. It can issue debt at a YTM of 8 % . The cost of issuing

Kan industires capital structure consists of debt and common equity. It can issue debt at a YTM of

8 % .

The cost of issuing common stock is

12 % .

Kan's tax rate is

20 % .

Kan plans to raise money

20 %

debt and

80 %

equity. Compute WACC

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