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Calculate the company WACC

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Question

You are provided with the following information about a company: 55% of its financing comes from equity and 45% from debt. The pre-tax cost of debt is 7.5%, and the applicable tax rate is 30%. Shareholders require a return of 12.5%. The firm's beta is 1.6 and the risk-free rate is 4.8%. Calculate the company's WACC.

Reference no: EM133495839

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