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Problem:

Calculate the WACC for Tango INC given the following capital structure information: debt financing of $2 million, at 8% interest, and common stock financing of $1million at 11%. Tango's Effective tax rate is 40%

A) 4.22%

B) 7.64%

C) 6.86%

D) 8.12%

Note: Provide support for your rationale.

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Category:- Basic Finance
Reference No.:- M91163335

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