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You are required to ascertain the most desirable capital structure for the given firm. The following estimates of cost of debt capital after tax is

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You are required to ascertain the most desirable capital structure for the given firm. The following estimates of cost of debt capital after tax is made at various levels of debt equity mix. Calculate the WACC for different proportions. Debt as % of total capital employed Cost of debt Cost of equity lo 17 16 10 17 16 20 7.5 16.5 30 7.5 17 140 8.5 18 50 8.5 19 60 9.5 20

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