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The Pomalift company has debt-to-equity ratio of 80% and is committed to maintaining that ratio in perpetuity. Pomalifts cost of debt is 6%. Teleferik Inc.,
The Pomalift company has debt-to-equity ratio of 80% and is committed to maintaining that ratio in perpetuity. Pomalifts cost of debt is 6%. Teleferik Inc., a competing cable car company, has no debt and its shareholders require a return of 9%. The tax rate is 30%. What is Pomalifts WACC?
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