Identical firms except for their capital structures

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Delta Mills and Franklin Mill are identical firms except for their capital structures. Delta is an unlevered firm with $750,000 in stock. Franklin is a levered firm with $375,000 of stock and an interest rate on debt of 8 percent. Both Delta and Franklin have an expected EBIT of $90,000. Ignore taxes. Delta has a WACC of _____ percent and Franklin's WACC is _____ percent

Reference no: EM131047491

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