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Jemisen's firm has expected earnings before interest and taxes of $1,800. Its unlevered cost of capital...

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Finance

Jemisen's firm has expected earnings before interest and taxesof $1,800. Its unlevered cost of capital is 12 percent and its taxrate is 35 percent. The firm has debt with both a book and a facevalue of $2,900. This debt has an 8 percent coupon and paysinterest annually. What is the firm's weighted average cost ofcapital?

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