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Suppose that TipsNToes, Incorporated's capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while its
Suppose that TipsNToes, Incorporated's capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while its cost of equity is 15 percent. If the appropriate weighted average tax rate is 21 percent, what will be TipsNToes' WACC?
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