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Solve for the weighted average cost of capital. 13.60% = cost of equity capital for a leveraged firm 3/4 = debt-to-total-market-value ratio 8.0% = before-tax

Solve for the weighted average cost of capital.

13.60% = cost of equity capital for a leveraged firm

3/4 = debt-to-total-market-value ratio

8.0% = before-tax borrowing cost

21.0%=marginal corporate income tax rate

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