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Determine the WACC for Cranston Retail Inc

question 28

Multiple Choice

Determine the WACC for Cranston Retail Inc.the firm has a before-tax cost of debt of 6.50%,a cost of equity of 11.50%,and a tax rate of 30.00%.The firm finances 40% of its assets with debt and 60% with equity.Further the risk-free rate is 3.00% and the firm has a beta of 1.20.


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