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Suppose that Glamour Nails, Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 5 percent, while
Suppose that Glamour Nails, Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 5 percent, while its cost of equity is 12 percent. If the appropriate weighted average tax rate is 40 percent, what will be Glamour Nails' WACC?
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