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You need to calculate the Weighted Average Cost of Capital (WACC) for your firm. Debt represents 36% of Assets. The stockholders require a return of
You need to calculate the Weighted Average Cost of Capital (WACC) for your firm. Debt represents 36% of Assets. The stockholders require a return of 13.75%, and the bond holders need a return of 5.15%. (The firms marginal tax rate is 0%.) What is the firms WACC?
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