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A company has determined that its optimal capital structure consits of 50% debt and 50% equity. Given the following information, calculate the firm's WACC.

R/d=7%
tax rate= 40%
Po=$30
Growth=0%
Do=$2.50

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Solution Summary

Weighted Average Cost of Capital (WACC) is calculated.

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A company has determined that its optimal capital structure consists of 50% debt and 50% equity. Given the following information, calculate the firm's WACC.

R/d=7% ...

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