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Business, 19.12.2019 06:31 dcardenas2005

Maloney's, inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. the firm is financed with $3,000,000 of common shares (market value) and $2,000,000 of debt. what is the after-tax weighted average cost of capital for maloney's, if it is subject to a 40 percent marginal tax rate?

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