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Problem 1: A firm has a total market value of $100 millions. The market value of debt is $45 millions and that of equity is

Problem 1: A firm has a total market value of $100 millions. The market value of debt is $45 millions and that of equity is $55 millions. The before tax cost of debt is 11% and that of equity is 15%. Calculate the weighted average cost of capital (WACC). (Tax Rate Tc =25% )

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