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Master Company has 3 million shares of common stock trading at $50 dollars per share on which investors expect a return of 16%. The company
Master Company has 3 million shares of common stock trading at $50 dollars per share on which investors expect a return of 16%. The company also has debt with a market value of $70 million with a pretax cost of 7%. What is the weighted average cost of capital if the tax rate is 40%? Master has no preferred stock outstanding
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