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You have decided that the table below reflects the optimal capital structure for the firm. Given this, what is the WACC of the firm if

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You have decided that the table below reflects the optimal capital structure for the firm. Given this, what is the WACC of the firm if its tax rate is 32%, and the cost to issue new common stock is 2.5% % Share Debt 0.42 Retained Earnings 0.37 New Common Stock Market Cost Cost to Firm 0.07 0.11 8.9% 6.079 2.85% 9.32%

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