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Question: 1. Your goal is to minimize a companys Weighted Average Cost of Capital (WACC). The company currently has a capital structure that is 50%
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1. Your goal is to minimize a companys Weighted Average Cost of Capital (WACC). The company currently has a capital structure that is 50% equity and 50% debt. You determine that its cost of equity is 15.2% and its after-tax cost of debt is 9.6%. Briefly explain how the firm can lower its WACC?
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