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what is the new WACC? Assume that by employing the CAPM we calculate our cost of equity to be 14%. Assume that a firm wants
what is the new WACC? Assume that by employing the CAPM we calculate our cost of equity to be 14%. Assume that a firm wants to utilise a mortgage with a cost of 10%. Assume the tax rate is 40%. Further assume that the project will be evenly weighted between debt and equity (i.e. 50/50) What is the new WACC
what is the new WACC?
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