What is the wacc if corporate taxes are given

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Question: A firm has an asset base with a market value of $5.6 million. Its debt is worth $2.5 million. If $0.4 million is paid in interest annually and the shareholders expect a 16% annual return, what is the weighted average cost of capital assuming no corporate taxes? Round your answer to two decimal places.

What is the WACC if corporate taxes are 45%? Round your answer to two decimal places.

Reference no: EM131974994

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