Question: Bama Tide Inc. typically uses equity as their main source of funding and typically only finances with 20% debt. The firm's after-tax cost of debt

Bama Tide Inc. typically uses equity as their main source of funding and typically only finances with 20% debt. The firm's after-tax cost of debt has been estimated to be 5% while their aftertax cost of equity is estimated at 8%. If the firm faces a 40% tax rate, what is their WACC? KAT=KBT(1T).WACC=wiki

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