Rainbow technology has 55000 in debt on which it pays 6, Ask an Expert

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Rainbow Technology has $55,000 in debt on which it pays 6% interest. The current value of the equity in the company is $105,000 and investors expect to earn 20% on their equity investment. Rainbow has an income tax rate of 30%.

What is the weighted average cost of capital (WACC) of Rainbow Technology? Please post step by step solution as well as the answer,

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93037651

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