Specializing in products from asia and west coast

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Transitions Inc. is an importminus-export company specializing in products from Asia and the West Coast. It can borrow in the debt market at8%. Its cost of equity with40% D/V ratio is12%. Its corporate tax rate is30%. If the M&M world of taxes holdstrue, what is the WACC for Transitions Inc. with a40% D/V financing?

Reference no: EM131044483

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