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Tree Co. issues only common stock and coupon bonds. The firm has a debt-equity ratio...

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Finance

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Tree Co. issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1/3. The cost of equity is 15.0 percent and the pre-tax cost of debt is 6.0 percent. The tax rate is 21 percent. What is its weighted average cost of capital (WACC)? 12.44 percent 13.90 percent 11.41 percent 10.26 percent

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