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    Finding WACC of Company ABC

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    Company ABC has a before tax cost of debt of 12% and a before tax cost of equity of 20%. 30% of the company is finances with debt and 70 % is financed with equity. Tax rate is 35%. What is the weighted average cost of capital?

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    Company ABC has a before tax cost of debt of 12% and a before tax cost of equity of 20%. 30% of the company is finances with debt and 70 % is financed with equity. Tax rate is 35%. What is the ...

    Solution Summary

    This solution is comprised of a detailed calculation to find WACC of Company ABC.

    $2.49

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