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The Nutrex Corporation wants to calculate its weighted average cost of capital. Its target capital structure weights are 40% long-term debt and 60% common equity.

The Nutrex Corporation wants to calculate its weighted average cost of capital. Its target capital structure weights are 40% long-term debt and 60% common equity. The before-tax cost of debt is estimated to be 10% and the company is in the 40% tax bracket. The current risk-free interest rate is 8% on Treasury bills. The expected return on the market is 13% and the firm

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