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The River Company's current capital structure consists of AED 300 million of long term debt and AED 600 million of equity. The company can sell
The River Company's current capital structure consists of AED 300 million of long term debt and AED 600 million of equity. The company can sell long-term bonds at a market yield of 8 percent. The required return on its common stock is 12 percent. The firms marginal tax rate is 30 percent. What is its weighted average cost of capital (WACC).
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