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Valuing a business-exercise The capital structure for Deconstruction Company is 60% equity and 40% debt. The required rate of return on equity is 12% and

Valuing a business-exercise

The capital structure for Deconstruction Company is 60% equity and 40% debt. The required rate of return on equity is 12% and that the business could borrow at an interest rate of 5%. What is the WACC if the tax rate is 21%?

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