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Problem Tropical Tours is considering an expansion operations, which will require the company issue new debt and equity. Tropical's inves banker provided the following information

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Problem Tropical Tours is considering an expansion operations, which will require the company issue new debt and equity. Tropical's inves banker provided the following information the cost of issuing new debt: Yield to Matur 4.5% Amount of Debt Issued $1-$450,000 450,001 - 750,000 Over 750,000 5.8 6.5 If Tropical's capital structure consists of 60 percent debt, what WACC break points are associated with issuing new debt

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