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Reference no: EM132028501

Timco uses a financial decision that is half debt and half equity. When we borrow new money, the interest rate will be 6%.

Our tax rate is 40%. The firm has a beta of 2. The risk free rate is .03 and we believe the market will earn 14%. Timco will only use retained earnings as equity. Find Timco's WACC.

Reference no: EM132028501

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