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Molineux corp. has market value of equity at $20 billion, and its debt book value is $4 billion. Its cost of equity is 12%, and
Molineux corp. has market value of equity at $20 billion, and its debt book value is $4 billion. Its cost of equity is 12%, and pretax cost of debt of 7%. Its tax rate is 35%.
a) Whats the companys capital structure?
b) Whats the after tax cost of debt?
c)Whats the companys WACC
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