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You are analyzing the cost of capital for a firm that is financed with 30 percent debt and 70 percent equity. The pre-tax cost of
You are analyzing the cost of capital for a firm that is financed with 30 percent debt and 70 percent equity. The pre-tax cost of debt capital is 8 percent, the cost of equity capital is 14 percent and the firm pays 15 percent taxes. What is the overall cost of capital for the firm? Show your answer as a percentage and round to two decimal places
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