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The company cost of capital, after tax, for a firm with a 60/40 debt/equity split, 8% cost of debt, 15% cost of equity, and a

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The company cost of capital, after tax, for a firm with a 60/40 debt/equity split, 8% cost of debt, 15% cost of equity, and a 35% tax rate would be: 702% 9.12% 13.80% 10.80% References Which of the following changes would tend to increase the company cost of capital for a traditional firm? decrease the proportion of debt financing increase the market value of the debt. decrease the proportion of equity financing Decrease the market value of the equity

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