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Problem 7, [6 pts] A biotechnology firm, Pfizer, has 5,952 million shares outstanding with a price of $43 per share. This firm has issued bonds
Problem 7, [6 pts] A biotechnology firm, Pfizer, has 5,952 million shares outstanding with a price of $43 per share. This firm has issued bonds with a current market value of $150,800 million. If we assume that the firm's equity cost of capital is 15%, and its debt cost of capital is 6%. What is Pfizer pre-tax WACC? If Pfizer's corporate tax rate is 20%, what is its after-tax WACC? a. b
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