Estimate the firm weighted-average-cost-of-capital

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Reference no: EM131950635

A firm has a debt-to-asset ratio of 30% (based on the market value of assets). The firm’s bondholders require a return of 3%, and the equity holders require a return of 7.50%. The firm’s marginal tax-rate is 35%. Estimate the firm’s Weighted-Average-Cost-of-Capital (WACC).

Reference no: EM131950635

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