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Ronnie's Comics has found that its cost of common equity capital is 13 percent and its cost of debt capital (YTM) is 9 percent. The
Ronnie's Comics has found that its cost of common equity capital is 13 percent and its cost of debt capital (YTM) is 9 percent. The firm is financed with $450,000,000 of common shares (market value) and $550,000,000 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? (Round to two decimal places) O 8.24% 6,37% 0.759% 09.07%
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