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Solve for the weighted average cost of capital: 10.60% K = cost of equity capital for a leveraged firm 1/3 8.0% = i =

Solve for the weighted average cost of capital: 10.60% K = cost of equity capital for a leveraged firm 1/3 8.0% = i = before-tax borrowing cost 40.0% = debt-to-total-market-value ratio = marginal corporate income tax rate

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