Weighted average cost of capital
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A company has determined that its optimal capital structure consists of 30 percent debt and 70 percent equity.
Given the following information, calculate the firm's weighted average cost of capital.
Rd = 6%
Tax rate = 35%
P0 = $35
Growth = 0%
D0 = $3.00
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The solution explains how to calculate the weighted average cost of capital
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