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McGarnagle Plc is similar to McBain Plc in all respects except for capital structure. McGarnagle has a total value of 800,000 and its equity has

McGarnagle Plc is similar to McBain Plc in all respects except for capital structure. McGarnagle has a total value of €800,000 and its equity has a value of €200,000

Assuming capital markets are perfect, except for the existence of taxes at a rate of 20%, what is the weighted average cost of capital for McGarnagle Plc?

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