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What is the weighted average cost of capital

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The Acme Inc. plans an expansion. The expansion is to be financed by selling $84 million in new debt and $135 million in new common stock. The before-tax required rate of return on debt is 8.27% percent and the required rate of return on equity is 19.96% percent.

If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

Reference no: EM131669327

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