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WACC question: Only debt & equity, no preferred. Pre - tax cost of debt is 5 % and the cost of equity is 9 .

WACC question: Only debt & equity, no preferred. Pre

-

tax cost of debt is

5 %

and the cost of equity is

9.5 % .

Debt

-

equity ratio:

20 % . (

Tax rate is always

21 %)

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