=+Problem 7.4 DE Inc has book values of debt and equity of $200m and $400m, respectively. Assume

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=+Problem 7.4 DE Inc has book values of debt and equity of $200m and $400m, respectively. Assume the market value of debt is the same as the book value. The cost of debt is 6.0 per cent, and the cost of equity is 12.0 per cent. If the market value of equity is $600m, how much will the WACC be increased by using market value weights rather than book value weights?

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