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The expected before-tax cost of capital for long-term debt, and common equity is 6% and 12%, respectively. If the company's tax rate is 30% and
The expected before-tax cost of capital for long-term debt, and common equity is 6% and 12%, respectively. If the company's tax rate is 30% and the company has a D/E ratio of 1/2, then the weighted average cost of capital to the firm is % 6 9 9.4 10 8.7
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