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What is the after-tax weighted average cost of capital

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Question - A firm has a total value of $1 million, debt valued at $400,000 and no preference shares. What is the after-tax weighted average cost of capital if the after tax cost of debt is 12% and the cost of equity is 15%?

 a. 13.8%

 b. 27.0%

 c. It is impossible to determine the WACC without debt and equity betas

 d. 13.5%

Reference no: EM133026935

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