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Posted on May 19, 2024

suppose that your firm has a cost of equity of 1 4 % and a pre - tax cost of debt of 8 % .

suppose that your firm has a cost of equity of

14 %

and a pre

-

tax cost of debt of

8 % .

If the target debt

/

equity ratio is

. 40

and the tax rate is

30 %,

what is the firm's WACC?

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