What would be the company cost of capital

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Dusit is financed 33% by debt yielding 8.3%. Investors require a return of 15.3% on Dusit's equity.

Problem 1: What is the company's weighted-average cost of capital if the corporate tax rate is 21%?

Problem 2: What would be the company's cost of capital if it were exempted from corporate tax?

Reference no: EM132908938

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