A firm has an asset base with a market value of $5.6 million. Its debt is worth $2.5 million. If $0.7
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Posted on: 05/28/2015 05:19 AM Due on: 09/30/2015
A firm has an asset base with a market value of $5.6 million. Its debt is worth $2.5 million. If $0.7 million is paid in interest annually and the shareholders expect a 16% annual return, what is the weighted average cost of capital assuming no corporate taxes? Round your answer to two decimal places.
What is the WACC if corporate taxes are 45%? Round your answer to two decimal places.

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A firm has an asset base with a market value of $5.6 million. Its debt is worth $2.5 million. If $0.7