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Question 2. - A company which is 70% debt-financed currently has a Weighted Average Cost of Capital (WACC) of 11%. What would the WACC be

Question 2. - A company which is 70% debt-financed currently has a Weighted Average Cost of Capital (WACC) of 11%. What would the WACC be if the company issued enough equity to pay back its debt? Assume a corporate taxation rate of 25%.

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