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We now have the components to calculate the weighted average cost of capital (WACC) WACC = rb (1-Tc)(B/V) + rs(S/V) (eq. 5) Where: WACC weighted

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We now have the components to calculate the weighted average cost of capital (WACC) WACC = rb (1-Tc)(B/V) + rs(S/V) (eq. 5) Where: WACC weighted average cost of capital rb E pretax market expected yield to maturity To E corporate tax rate B = market value of debt market value of equity

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