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Calculate the firms weighted average cost

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In the spring of last year Tempe Steel learned that the firm would need to re-evaluate the company's weighted average cost of capital following a significant issue of debt. The firm now has financed 42% of its assets using debt and 58% using equity. Calculate the firm's weighted average cost of capital where the firm's borrowing rate on debt is 7.8%, it faces a 35% tax rate, and the common stockholders require a 20.3% rate of return.

Reference no: EM13268498

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