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A company has a cost of equity of 11.02 percent, a pretax cost of debt of 5.42 p...
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A company has a cost of equity of 11.02 percent, a pretax cost of debt of 5.42 percent, and a tax rate of 21 percent. The company's capital structure consists of 70 percent debt on a book value basis, but debt is 36 percent of the company's value on a market value basis. The company’s WACC is:
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