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October 22, 2014

Homework Help: Finance

Posted by Louise on Friday, June 14, 2013 at 5:41pm.

a firm wants to create a weighted average cost of capital (WACC) of 10.4 percent. The firm's cost of equity is 14.5 percent and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What does the debt weight need to be for the firm to achieve its target WACC?

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