Question: Q4 11 Points 4. Consider the following Current Data for ABC Corp.: Market Value (in millions of $) Cost Debt 16,000 7% Equity 26,000 14%

Q4 11 Points 4. Consider the following Current Data for ABC Corp.: Market Value (in millions of $) Cost Debt 16,000 7% Equity 26,000 14% If ABC moves to and maintains a debt-to-value (D/V) ratio of 50%, compute its WACC (after the change in its capital structure). Assume that the cost of debt increases to 8%. The tax rate is 35%. Use the three-step procedure. Please select file(s) Select file(s)

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