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Estimate what is the weighted average cost of capital

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Question 1: The Black Bird Company plans an expansion. The expansion is to be financed by selling $159 million in new debt and $150 million in new common stock. The before-tax required rate of return on debt is 8.20% percent and the required rate of return on equity is 18.46% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital? Round the answer to two decimal places in percentage form.

Reference no: EM132559330

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