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The pre-tax cost of debt financing averages 7 tax rate is

A firm, based on market value, has 70% stock financing and 30% debt. The cost of equity financing averages 13%. The pre-tax cost of debt financing averages 7%. Tax rate is .40 Calculate the firm's weighted average cost of capital (WACC) from this data.

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Finance Basics: The pre-tax cost of debt financing averages 7 tax rate is

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