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The unlevered Beta of a firm is the same as the market. The manager is considering moving to a 4 7 % debt capital structure

The unlevered Beta of a firm is the same as the market. The manager is considering moving to a 47% debt capital structure with before-tax cost of debt of 7%. If risk free rate is 3% and market risk premium is 7%, what would be the WACC of levered firm? Assume 35% tax rate.Select one of the following:0.0920.08740.09580.08640.1027

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