Star labs has a debt-equity ratio of 128 and a tax rate of


Star Labs has a debt-equity ratio of 1.28 and a tax rate of 30 percent. The firm does not issue preferred stock. The cost of equity is 16.45 percent and the aftertax cost of debt is 5.2 percent. What is the weighted average cost of capital?

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Financial Management: Star labs has a debt-equity ratio of 128 and a tax rate of
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