Question: Current Structure: Total debt $0 Tax rate 25% Beta 1.1 Target Structure: Wd 30% Tax rate 25% Ws 70% Market Information: Rf 4% Market Risk

Current Structure: Total debt $0 Tax rate 25% Beta 1.1 Target Structure: Wd 30% Tax rate 25% Ws 70% Market Information: Rf 4% Market Risk Premium 9% What is the target cost of capital? What is the current WACC?

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