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A firm currently has a capital structure with 10 % debt. The debt, which is virtually riskless, pays an interest rate of 5%. The expected rate of return on the equity 10 %. What is the Weighted-Average Cost of Capital if the firm pays no taxes? Enter your answer as amcentage rounded to two decimal places. Do not include the percentage sign in your answer.

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Taxes and Business Strategy A Planning Approach

Taxes and Business Strategy A Planning Approach

ISBN: 9780132752671

5th edition

Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon

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Posted Date: April 24, 2022 02:17:08
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