What is weighted average cost of capital

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Reference no: EM131543390

(WACC) Laury, Inc has two components of capital, common stock, and corporate bonds. Us capital mix is similar to that of its competitors at 50% bonds and 50% common stock. It has a 1.1% after-tax cost of debt and a 12% cost of equity. If MacD is in the 35% marginal tax rate, what is its weighted average cost of capital?

Reference no: EM131543390

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