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What will the wacc be in the levered firm

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Reference no: EM132731498

The Jean Outlet is an all-equity firm but can borrow at 5.8 percent.

The firm's WACC is currently 12.5 percent, and the tax rate is 28 percent. Consider taxes.

If the firm converts to 20 percent debt, what will the WACC be in the levered firm?

Reference no: EM132731498

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