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What is the firm weighted average cost of capital

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The firm is financed with debt and equity. The book value of the debt is $10,000,000; the book value of the equity is $30,000,000. The stockholders require an 10.1% return. If the required return on the firm's debt is 4% and the firm's tax rate is 20%, what is the firm's weighted average cost of capital (WACC)?

Reference no: EM133071619

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