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Question 4 1. X company currently has no debt. The cost of equity is 18.5%. The company CFO proposed to add debt to the capital
Question 4 1. X company currently has no debt. The cost of equity is 18.5%. The company CFO proposed to add debt to the capital structure by 25%. That means the debt to value ratio is . The additional debt will cost 12.5% and the tax rate is 33.5%. Find the current after tax WACC
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