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ABC Inc desires to maintain a capital structure of 80% equity and 20% debt They currently have an effective tax rate of 30% The company’s cost of equity capital is 12% To obtain their debt

ABC Inc. desires to maintain a capital structure of 80% equity and 20% debt. They currently have an effective tax rate of 30%. The company’s cost of equity capital is 12%. To obtain their debt financing, they issue bonds with an interest rate of 10%. What is the company’s weighted average cost of capital?

Jul 15 2020 View more View Less

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