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Question
Calculate the weighted average cost of capital (WACC) based on the following information: the capital structure weights are 50% debt and 50% equity; the interest rate on debt is 10%; the required return to equity holders is 20%; and the tax rate is 30%.
a. 7.0%
b. 10.0%
c. 13.5%
d. 17.5%
Answer
This answer is hidden. It contains 1 characters.
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