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The Pomalift company has debt-to-equity ratio of 80% and is committed to maintaining that ratio in perpetuity. Pomalift's 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. Pomalift's 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 Pomalift's WACC? O 9.5% O 8.496 O 8.896 O 8.296
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