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NOT A OR B Take It All Away has a cost of equity of 10.84 percent, a pretax cost of debt of 5.47 percent, and
NOT A OR B
Take It All Away has a cost of equity of 10.84 percent, a pretax cost of debt of 5.47 percent, and a tax rate of 39 percent. The company's capital structure consists of 76 percent debt on a book value basis, but debt is 38 percent of the company's value on a market value basis. What is the company's WACC? 9.39% 0 6.60% 10.82% 8.80% 7.99%Step by Step Solution
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