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    Weighted average cost of capital

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    1. Weekend Warriors, Inc., has 35% debt and 65% equity in its capital structure. The firms estimated after-tax cost of debt is 8% and its estimated cost of equity is 13%. Determine the firm's weighted average cost of capital (WACC)?

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    Solution Summary

    The solution explains step-by-step information on how to calculate the weighted average cost of capital (WAAC) for the firm Weekend Warriors, Inc.