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Solve for the weighted average cost of capital. 17.20% = K1 = cost of equity capital for a leveraged firm 6/7 A = debt-to-total-market-value

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Solve for the weighted average cost of capital. 17.20% = K1 = cost of equity capital for a leveraged firm 6/7 A = debt-to-total-market-value ratio 8.0% 40.0% T = before-tax borrowing cost marginal corporate income tax rate 7.00 percent 6.89 percent 6.73 percent O 6.57 percent

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