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Determine the weighted cost of capital for the apple

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Problem - Determine the weighted cost of capital for the APPLE inc that will finance its optimal capital budget with $120 million of long-term debt (kd = 12.5%) and $130 million in retained earnings (ke = 16.0%). APPLE Inc present capital structure is considered optimal. The company's marginal tax rate is 35%.

Reference no: EM132971116

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