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The tax rate is 40%. The cost of equity is 13% and the cost of debt is 1%. Calculate the weight of debt (w d
The tax rate is 40%. The cost of equity is 13% and the cost of debt is 1%. 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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