AllCity, Inc., is financed 40% with debt, and 60% with common stock. Its pretax cost...
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AllCity, Inc., is financed 40% with debt, and 60% with common stock. Its pretax cost of debt is 6%. It has an equity beta of 1.1. Assume the risk-free rate is 2%, the market risk premium is 7% and AllCitys tax rate is 25%. What is its after-tax WACC?
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