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Calculate firm weighted average cost of capital


Problem:

Meiston Press has a debt-equity ratio of 1.20. The pre-tax cost of debt is 8.70 percent and the cost of equity is 13.5 percent.

Required:

Question: What is the firm's weighted average cost of capital (WACC) if the tax rate is 34 percent?

Note: Please show guided help with steps and answer.

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Accounting Basics: Calculate firm weighted average cost of capital
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