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  3. the firm has $0.500 billion in outstanding debt. i

The firm has $0.500 billion in outstanding debt. Its total value is $2 billion. Its...

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Finance

The firm has $0.500 billion in outstanding debt. Its total value is $2 billion. Its cost of debt (rd) is 8% and its cost of equity is (re) is 12%. What is its weighted average cost of capital (WACC) if its tax rate is 40%?

10.60%

10.00%

10.40%

10.20%

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