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Economics

If a company has a required WACC of 10% per year. it's stocks are expected to have a 16% rate of return. The capital structure of the company has to be 65% debt and 35% equity. the income tax rate of the company is 30%. What is the maximum annual cost of debt the company can borrow?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91675223

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