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What is the company wacc if the company is financed only

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Reference no: EM132961019

Problem 1: A company's cost of debt is 0.06, and its cost of retained earnings is 0.11. If the company is financed only with debt and equity and its equity fraction is 0.7, what is the company's WACC?

The formula is (1 - {ws})*{rd} + {ws}*{rs}

Reference no: EM132961019

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