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Nolyet answered Marked out of 2.00 P Hag question Q25. A company's capital structure calls for 40% debt and 60% equity. It needs $500 billion

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Nolyet answered Marked out of 2.00 P Hag question Q25. A company's capital structure calls for 40% debt and 60% equity. It needs $500 billion for investments this year. It can raise all of its required financings by issuing debt the cost (to the firm) of which is 4% today. It can raise equity financing at a 12% cost. What cost of capital should the firm use to evaluate projects this year? Select one: O a. 4% o b. 12% O c. 8.8% O d.8% 0 o e. None of the above

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