XYZ corporation has the following market value based capital structure. Long term bonds $20 billion Common equity $3

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answerhappygod
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XYZ corporation has the following market value based capital structure. Long term bonds $20 billion Common equity $3

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XYZ corporation has the following market value based capital
structure.
Long term bonds $20 billion
Common equity $30 billion
The required rate of return for the common stock is 20% and the
yield to maturity for the bonds is 10%.
The tax rate is 30%. Compute the after tax weighted average
cost of capital.
Report the answer as a percentage figure without the % symbol.
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