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What is the firm weighted average cost of capital

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FG has expected earnings before interest and taxes of $5,000. Its unlevered cost of capital is 10 percent and its tax rate is 30 percent. The firm has debt with both a book and a face value of $2,000. This debt has a 5 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?

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Reference no: EM132390701

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