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Adjusted WACC Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis
Adjusted WACC Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 27% and cost of 17.33% Preferred stock: 11% and cost of 13.01% Debt: 62% and cost of 11.3% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40%? What is the adjusted WACC for Lewis if the tax rate is 40%? % (Round to two decimal places.)
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