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Which of the following is the after-tax weighted-average cost of capital for a company with the following capital structure? Annual cost of equity = 10%
Which of the following is the after-tax weighted-average cost of capital for a company with the following capital structure? Annual cost of equity = 10% per year Annual yield to maturity on debt = 5% Marginal corporate tax rate = 40% Market value = $500 million in equity and $500 million in debt 6.0% 6.5% 7.5% 10.0%
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