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Please answer the following: A firm raises $21,000 of total financing, of which Equity is $13,000 and the rest is Debt. The rate of return
Please answer the following:
A firm raises $21,000 of total financing, of which Equity is $13,000 and the rest is Debt. The rate of return to investors for Equity is 9% and for debt is 5%. The corporate tax rate is 40%, and interest is deductible as an expense for tax purposes. Answer should be a number given as a \%. That is, for example 3.18% should be answered as 3.18 rather than 3.18% or 0.0318. What is the WACC? YourStep by Step Solution
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