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Suppose Mother Wit Measuring Inc. is 40% funded by debt. Its cost of equity is 16.2%, and its before-tax cost of debt is 10.5%. If
Suppose Mother Wit Measuring Inc. is 40% funded by debt. Its cost of equity is 16.2%, and its before-tax cost of debt is 10.5%. If the tax rate is 40%, what is the WACC for Mother Wit? Question 15 options:
a) 13.92%
b) 12.24%
c) 16.20%
d) 13.35%
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