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Q4. Adjusted WACC . Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on hiscompany's WACC. Currently,
Q4. Adjusted WACC.Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on hiscompany's WACC. Currently, Lewis has the following financingpattern:
Equity: 44% and cost of 16.19%
Preferredstock: 11% and cost of 11.72%
Debt: 45% and cost of 8.3% before taxes
What is the adjusted WACC for Lewis if the tax rate is:
a.40%?
b.30%?
c.15%?
d.10%?
e.0%?
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