Assume the appropriate weighted average tax rate

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Reference no: EM132027001

Suppose that TapDance, Inc.’s capital structure features 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 8 percent, while its cost of equity is 13 percent. Assume the appropriate weighted average tax rate is 34 percent. What will be TapDance’s WACC %?

Reference no: EM132027001

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