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The money raised will be used to repurchase shares the

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Company Z currently all-equity financed, with a cost of capital of 15% and firm value of $10 million. The company is considering a $2 million debt issue at 8% interest rate. The money raised will be used to repurchase shares. The company's marginal tax rate is 32%. According to the M&M Proposition, what is Aceline's WACC after the debt issue

a. 13.09%

b. 14.10%

c. 14.20%

d. 15.00%

e. 16.19%

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Finance Basics: The money raised will be used to repurchase shares the

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Finance Basics: The money raised will be used to repurchase shares the

Reference No:- TGS02635854

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