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If the cost of the companys equity capital is 6 and the

Your boss, whose background is in financial planning, is concerned about the company's high weighted average cost of capital (WACC) of 26%. He has asked you to determine what combination of debt-equity financing would lower the company's WACC to 14%. If the cost of the company's equity capital is 6% and the cost of debt financing is 27%, what debt-equity mix would you recommend?

The debt-equity mix should be % debt and % equity financing.

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