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What is the firms wacc is operating

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Reference no: EM133002503

Problem 1: Echuca Cotton Company has a target debt-equity ratio of 0.45. Its cost of equity is 10.3%, and its cost of debt is 6.4%. If the tax rate is 30%, what is the firms WACC, given Echuca, is operating under a classical tax system?

Reference no: EM133002503

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