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Calculate the weighted average cost of capital

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Question - A year ago a company issued a bond with a 12-year maturity, with a coupon rate of 8%, currently the bond is selling at 97 dollars, the company has a tax rate on profits of 26%. The company has a target D / E of 1.9, a risk premium for the cost of equity of 5%. Calculate the weighted average cost of capital.

Reference no: EM133007668

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