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A company is 40% financed by risk-free debt. The interest rate is 10%, the expected market risk premium is 8%, and the beta of the company’s common stock is.5. What is the after- tax WACC, assuming that the company pays tax at a 35% rate. ( Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) After-tax WACC.

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Financial Management, Finance

Category:- Financial Management
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