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Problem 16-19 Leverage and the Cost of Capital (LO2) Dusit is financed 20% by debt yielding 8.9%. Investors require a return of 15.9% on Dusit's

image text in transcribed Problem 16-19 Leverage and the Cost of Capital (LO2) Dusit is financed 20% by debt yielding 8.9%. Investors require a return of 15.9% 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? Note: For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places

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