Find the weighted average cost of capital

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Reference no: EM13280615

A firm has a capital structure which consists of 30% debt and 70% equity. The before-tax cost of debt is 10% and the cost of equity is 15%. Find the weighted average cost of capital (WACC) if the firm's tax rate is 34%.

Hint: The formula for finding the weighted average of capital is found in "Discount rate determination"

Reference no: EM13280615

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