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Question: company y has a cost of common equity of 10...

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Company y has a cost of common equity of 10%. It also has a before-tax cost of debt of 10% and its marginal tax rate is 40%. Assume that the company's long-term debt sells at par value. The company has 500 shares of common stock outstanding that sell for $3.25 per share. What is their WACC if they use 66% stock and 34% debt?

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