A local firm reports a total value of $550,000 with debt valued at $200,000. The firm's after-tax
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Question:
- A local firm reports a total value of $550,000 with debt valued at $200,000. The firm's after-tax cost of debt is 7.0 percent while its cost of equity is 14.0 percent. The firm's tax rate is 21 percent. What is the weighted average cost of capital?
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