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Shareholders for Joe's Enterprises have invested $15,000,000 of their own money in the enterprise. In addition, they have borrowed $10,000,000 from debtholders at 10%. Joe's
Shareholders for Joe's Enterprises have invested $15,000,000 of their own money in the enterprise. In addition, they have borrowed $10,000,000 from debtholders at 10%. Joe's shareholders' required rate of return (on their investment of $15,000,000) is 20%. Their tax rate is 30%. To the nearest one-hundredth percent, what is Joe's weighted average cost of capital? A
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