Question: Let Timco use a capital structure that is 30% debt and 70% equity, The firm can borrow at 5%. The tax rate is 40%.

Let Timco use a capital structure that is 30% debt and 70%

Let Timco use a capital structure that is 30% debt and 70% equity, The firm can borrow at 5%. The tax rate is 40%. Let the firm beta be 1.5, the market return 14%, and the risk free rate 2%. Find the WACC.

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