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Calculate the weighted average cost of capital for the firm

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Question - C Ltd. has the following capital structure:

Form of capital Weight After-tax cost

Long-term debt 0.5 9%

Short-term debt 0.1 7%

Equity 0.4 14%

Calculate the weighted average cost of capital for the firm:

A. 11%

B. 10%

C. 30%

D. 16%

Reference no: EM131969807

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