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Company weighted average cost of capital

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A company has a beta of 0.8, pre-tax cost of debt of 6.8% and an effective corporate tax rate of 21%. 57% of its capital structure is debt and the rest is equity. The current risk-free rate is 0.4% and the expected market risk premium is 6.3%. What is this company's weighted average cost of capital? Answer in percent, rounded to two decimal places.

Reference no: EM132500737

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