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What is its weighted average cost of capital

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Reference no: EM131105119

A company has 10 million shares outstanding trading for $7 per share.

It also has $300 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 9%, and its effective corporate tax rate is 40%, what is its weighted average cost of capital?

Reference no: EM131105119

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