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Calculate the weighted average cost of capital

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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%. Please show all work and steps to answer the question. Explain all your steps.

Reference no: EM133042968

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