Calculate wacc using market value capital structure

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Reference no: EM131926636

Question: The crabtree company's cost of common equity is 16 percent, its before tax cost of debt is 13 percent and its marginal tax rate is 45 percent. Given Crabtree's market value capital structure below, calculate its WACC.

Long Term Debt 23,000,000

Common Equity 67,000,000

total capital 90,000,000

Reference no: EM131926636

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