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The firm's tax rate is 34%. The firm's pre-tax cost of debt is 10 %; the firm's debt-to-equity ratio is 3 1/2 ; the risk-free
The firm's tax rate is 34%. The firm's pre-tax cost of debt is 10%; the firm's debt-to-equity ratio is 3 1/2; the risk-free rate is 4%; the beta of the firm's common stock is 1.9; the market risk premium is 8%. Calculate the weighted average cost of capital. |
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