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What is the marginal cost of capital

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Reference no: EM132546106

The weighted average cost of capital for firm X is currently 10%.

Firm X is considering a new project but must raise new debt to finance the project. Debt represents 25% of the capital structure. If the after tax cost of debt will rise from 7% to 8%, what is the marginal cost of capital?

Reference no: EM132546106

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