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Suppose that Coldplay Industries has a cost of equity of 12% and a cost of debt of 7%. If the target debt/equity ratio is 60%,
Suppose that Coldplay Industries has a cost of equity of 12% and a cost of debt of 7%. If the target debt/equity ratio is 60%, and the tax rate is 34%, what is Coldplay's weighted average cost of capital (WACC)? Instructions: Include all symbols and punctuation: 1500 $1,500 Never spell out the unit: 7.4 months Round long decimals to the nearest hundredth: 20.3341 20.33 If the answer is a percentage, convert to percentage form before rounding: 0.03948 3.948% 3.95% Group of answer choices 9.23% 7.35% 9.05% 7.58%
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