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April 23, 2014

Homework Help: corporate finance

Posted by Bjusreal on Saturday, July 17, 2010 at 2:22pm.

Life Balance, Inc. has found that its cost of common equity capital is 15 percent and its cost of debt capital is 9 percent. If the firm is financed with $6 million of common shares (market value) and $4 million of debt, what is the after tax weighted average cost of capital (WACC) for the company if it is subject to a 30 percent marginal tax rate?

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