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What would be a firm's WACC if the risk free rate was 4%, the expected market return was 6%, the firm's marginal tax rate was
What would be a firm's WACC if the risk free rate was 4%, the expected market return was 6%, the firm's marginal tax rate was 35%, the firm has a beta of 1.5, its before-tax cost of debt was 6%, and its outstanding debt was valued at $1 million in the market, while its common shares were worth $6 million in the open market, and it had no preferred shares.
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