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August 2, 2014

Homework Help: economics

Posted by Sue on Sunday, March 11, 2007 at 3:44pm.

A Aircraft company's capital structure is made up of 40% debt and 60% common equity (both at market values). The interest rate on bonds similar to those issued by the company is 8%. The cost of equity is estimated to be 15%. The income tax rate is 40%. The company's weighted cost of capital is

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