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Transitions Inc. is an importexport company specializing in products from Asia and the West Coast. It can borrow in the debt market at 8%. Its
Transitions Inc. is an importexport company specializing in products from Asia and the West Coast. It can borrow in the debt market at 8%. Its cost of equity with 40% D/V ratio is 12%. Its corporate tax rate is 30%. If the M&M world of taxes holds true, what is the WACC for Transitions Inc. with a 40% D/V financing?
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