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The company cost of capital, pretax for a firm with a 60/40 debt/equity split, 8% cost of debt, 15% cost of equity, and a 35%
The company cost of capital, pretax 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:
- 7.02%
- 9.12%
- 10.80%
- 13.80%
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