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questions. Question 29 (2 points) What is the weighted average cost of capital for Baseball Co.? 8.00% 8.30% 7.60% None of the presented solutions Question
questions. Question 29 (2 points) What is the weighted average cost of capital for Baseball Co.? 8.00% 8.30% 7.60% None of the presented solutions Question 30 (2 points) Which equipment should the company invest in? Neither investment would be profitable. The equipment returning 10%. The equipment returning 8%. Both investments would have a profitable return using WACC. Previous Page Next Page Baseball Co. has a capital cost structure of 45% debt and common equity of 55%. The after tax cost of debt is 5.0% and the cost of common capital is 11%. The company can buy equipment that would return 8.5% financed by debt or similar equipment financed by common capital returning 10%. Page 3 of
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