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One firm has debt worth $5 million, equity worth $15 million, cost of debt 6%. Its stock issues dividend regularly at $5 a year per

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One firm has debt worth $5 million, equity worth $15 million, cost of debt 6%. Its stock issues dividend regularly at $5 a year per share forever, and stock price at $50 per share. Tax rate is 15%. What is the after-tax weighted average cost of capital for this firm? 15% 5.63% 8.78% 12%

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