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Axle cos shareholders require a 225 percent return and

Question: Axle Co.'s shareholders require a 22.5 percent return and Axle's bondholders require a 14 percent return. Based on a 33.33 percent of the debt/total asset ratio and a 46 percent tax rate, find Axle's weighted average cost of capital. Hint: use WACC formula.

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Finance Basics: Axle cos shareholders require a 225 percent return and

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