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Calculate the company weighted average cost of capital

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Reference no: EM132224159

Air Taxi, Inc. has provided the following information:

  • Debt-Equity Ratio Target 0.35
  • Cost of equity 9.4 percent
  • Pretax cost of debt 5.5 percent
  • Tax rate 30 percent

Calculate the company's weighted average cost of capital.

Reference no: EM132224159

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