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please show all work step by step Problem 2. Given the following conditions, calculate the MAXIMUM annul interest rate for this company to borrow money
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Problem 2. Given the following conditions, calculate the MAXIMUM annul interest rate for this company to borrow money if the after tax WACC cannot exceed an annual rate of 6.61% (Answer needs to be shown 2 decimal points of a percent as xxx%) 10-year Treaswre Bond Annual Rate of Return Stock Beta value- S&P500 Index Expected annual rate of return Marginal Income Tax Rate 3.00% 1.25 10.00% 35% 65% Proportion of Debt to Total CapitalStep by Step Solution
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