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The tax rate is 40%. The cost of equity is 10% and the cost of debt is 7%. Calculate the weight of debt (wd) in

The tax rate is 40%. The cost of equity is 10% and the cost of debt is 7%. Calculate the weight of debt (wd) in a way that the WACC is equal to the simple average of the cost of debt and the cost of equity in percentage.

Hint: calculate the weight of debt (wd) so WACC is equal to (rd+re)/2

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