Question: Using the WACC in practice: Maloney's, Inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital

Using the WACC in practice: Maloney's, Inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. If the firm is financed with $3,000,000 of common shares (market value) and $2,000,000 of debt, then what is the after-tax weighted average cost of capital for Maloney's if it is subject to a 40 percent marginal tax rate? A 8.969 1154

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