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Ronnie's Comics has found that its cost of common equity is 15 percent and its cost of debt is 12 percent. The firm is
Ronnie's Comics has found that its cost of common equity is 15 percent and its cost of debt is 12 percent. The firm is financed with $300,000,000 of common shares (market value) and $700,000,000 of debt. What is the after-tax weighted average cost of capital for Ronnie's, if it is subject to a 35 percent marginal tax rate? 9.60% 12.90% 11.33% 9.96%
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