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The corporate tax rate for the company ABC is 30%. The debt-equity ratio is 0.4 and it plans to maintain a constant debt-equity ratio. The

The corporate tax rate for the company ABC is 30%. The debt-equity ratio is 0.4 and it plans to maintain a constant debt-equity ratio. The cost of debt is 6.30% and its cost of equity is 14.25%

Compute ABC's weighted average cost of capital. (5 marks)

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