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Ronnie's Comics has found that its cost of common equity is 15% and its cost of debt capital is 12%. If the firm's is financed
Ronnie's Comics has found that its cost of common equity is 15% and its cost of debt capital is 12%. If the firm's is financed with 250,000,000 of common shares (market value) and 750,000,000 of debt, then what is the after-tax weighted average cost of capital for Ronnie's if it is subject to a 35% marginal tax rate?
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