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Problem 16-19 Leverage and the Cost of Capital (LO2) Dusit is financed 26% by debt yielding 8.3%. Investors require a return of 15,3% on Dusit's

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Problem 16-19 Leverage and the Cost of Capital (LO2) Dusit is financed 26% by debt yielding 8.3%. Investors require a return of 15,3% on Dusit's equity. a. What is the company's weighted average cost of capital if the corporate tax rate is 21%? b. What would be the company's cost of capital if it were exempted from corporate tax? (For all the requirements, do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. % Weighted-average cost of capital Weighted-average cost of capital b. %

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