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Skolits Corp. has a cost of equity of 10.9 percent and an aftertax cost of debt of 4.2 percent. The company's balance sheet lists long-term
Skolits Corp. has a cost of equity of 10.9 percent and an aftertax cost of debt of 4.2 percent. The company's balance sheet lists long-term debt of $300,000 and equity of $560,000. The company's bond sell for 95.1 percent of par and market-to-book ratio is 2.56 times. If the company's tax rate is 40 percent, what is the WACC?
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