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Suppose ABC has 10.84% cost of equity, 9% before-tax cost of debt, and a target debt-equity ratio of 50%. ABC has a tax rate of

Suppose ABC has 10.84% cost of equity, 9% before-tax cost of debt, and a target debt-equity ratio of 50%. ABC has a tax rate of 21%, what is the firm's market weight of the equity and its weighted average cost of capital (WACC) ?

Group of answer choices

0.5 and 9.6%

2/3 and 9.1%

2/3 and 9.6%

0.5 and 8.8%

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