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PepsiCo can borrow in the debt market at 8%, and it currently has a debt to equity ratio (D/E) of 50%. If the cost of

PepsiCo can borrow in the debt market at 8%, and it currently has a debt to equity ratio (D/E) of 50%. If the cost of equity is 12%, what is the WACC? Assume that the corporate tax rate is 25%, and the M&M world with taxes holds true.

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