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QUESTION 4 On the most basic level, if a firm's Weighted Average Cost of Capital (WACC) is 10%, what does this mean? Why do

QUESTION 4 On the most basic level, if a firm's Weighted Average Cost of Capital (WACC) is 10%, what does this mean? Why do we use an after-tax figure for the cost of debt but not for the cost of equity? (20 marks) [Total: 40 marks]

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