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Jemisens firm has expected earnings before interest and taxesof $1,300. Its unlevered

Jemisen& s firm has expected earnings before interest and taxesof $1,300. Its unlevered cost of capital is 15 percent and its taxrate is 35 percent. The firm has debt with both a book and a facevalue of $2,100. This debt has a 9 percent coupon and pays interestannually. What is the firm's weighted average cost of capital?

Dec 04 2019 View more View Less

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