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The following information relates to the Falcon Division of Xenon Enterprises: Interest rate on debt capital 6 % Cost of equity capital 1 0 %
The following information relates to the Falcon Division of Xenon Enterprises:
Interest rate on debt capital
Cost of equity capital
Market value of debt capital $ million
Market value of equity capital $ million
Income tax rate
On the basis of this information, what is Falcons weightedaverage cost of capital?
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