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Stock in Boulton Corporation has a beta of 0.80. The market risk premium is 5 percent and the risk-free rate is 5 percent. The stock
Stock in Boulton Corporation has a beta of 0.80. The market risk premium is 5 percent and the risk-free rate is 5 percent. The stock currently sells for $45 per share. The company's cost of debt is 9 percent before taxes. If the firm has a target debt-equity ratio of 50 percent and a 35 percent tax rate, what is the firm's WACC? Please show all of your work
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