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Q.5. Calculate the Weighted Average Cost of Capital (WACC) using the following information: Long Term Debt = $3 million Equity Capital = $2 million Current

Q.5. Calculate the Weighted Average Cost of Capital (WACC) using the following information: Long Term Debt = $3 million Equity Capital = $2 million Current yield on debt = 5.00% Tax rate = 20.00% Cost of equity capital (from CAPM) = 7.90%

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