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What will the wacc be after the debt issuance

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Reference no: EM133121368

ABC Corporation has the below financials:

EBIT: $300,000

Debt-to Equity Ratio: 0

WACC: 11%

Tax Rate: 40%

If ABC plans to issue $500,000 in debt at a rate of 7% to buy back stock, what will the WACC be after the debt issuance? (provide one decimal, example 4.7%)

Reference no: EM133121368

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