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What is the firm cost of capital for rocketfuel limited

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Reference no: EM133000049

Problem 1: RocketFuel Limited has 44% of its assets financed with bank debt and the remaining with equity. The bank debt has a before-tax interest cost of 9.4%. RocketFuel's shareholders require a 14.1% return on their investment. If the tax rate is 30%, what is the firm's cost of capital (WACC)?

Reference no: EM133000049

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