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Estimate the firm weighted average cost of capital is

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Question 1: A firm's capital structure is 50% debt and 50% common equity. The tax rate is 20%, the interest rate on new debt is 10.5%, and the cost of common equity is 13.4%. The firm's weighted average cost of capital (WACC) is ___________ %. This is calculated to two decimal places using the following formula

Reference no: EM132599360

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