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What is the WACC for a firm with 50% debt and 50% equity that pays 12% on its debt, 20% on its equity, and has

What is the WACC for a firm with 50% debt and 50% equity that pays 12% on its debt, 20% on its equity, and has a 21% tax rate?

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  • 9.6%

  • 12.0%

  • 14.7%

  • 16.0%

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