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What is the WACC for a firm with only debt and equity in its capital structure, a debt-to-equity-ratio of 1/3; a 5.30% before-tax cost of
What is the WACC for a firm with only debt and equity in its capital structure, a debt-to-equity-ratio of 1/3; a 5.30% before-tax cost of debt; a 11.30% cost of equity; and a 46% tax rate? (No Excel answers please).
a. 7.38%
b. 9.80%
c. 11.47%
d. 9.19%
e. 8.49%
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