Consider a firm that has a debt-equity ratio of 1/3. The rate of return for debt is 8% and the rate of return for equity

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answerhappygod
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Consider a firm that has a debt-equity ratio of 1/3. The rate of return for debt is 8% and the rate of return for equity

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Consider a firm that has a debt-equity ratio of 1/3. The rate ofreturn for debt is 8% and the rate of return for equity is 14%. Thecorporate tax rate is 38%. What is the weighted average cost ofcapital? Enter your answer as a percentage and rounded to 2 DECIMALPLACES. Do not include the percentage sign in your answer.
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