Question: A firm currently has a capital structure with 40 % debt. The debt, which is virtually riskless, pays an interest rate of 5 %. The

A firm currently has a capital structure with 40 % 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?

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