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The following information relates to the Falcon Division of Xenon Enterprises: 6% 10% Interest rate on debt capital Cost of equity capital Market value of
The following information relates to the Falcon Division of Xenon Enterprises: 6% 10% Interest rate on debt capital Cost of equity capital Market value of debt capital Market value of equity capital Income tax rate $46 million $76 million 40% On the basis of this information, Falcon's weighted-average cost of capital is closest to Multiple Choice 2.80%. 733%. 7.59% 8.49% None of the answers is correct
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