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The Black Bird Company plans an expansion. The expansion is to be financed by selling $42 million in new debt and $158 million in new
The Black Bird Company plans an expansion. The expansion is to be financed by selling $42 million in new debt and $158 million in new common stock. The before-tax required rate of return on debt is 10.82% percent and the required rate of return on equity is 13.26% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?
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