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Calculate the weighted average cost of capital

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Suppose a firm has long term debt of $35 million and short term debt of $20 million with accounts payable of $5 million, and accounts receivable of $8 million. The firm also have property, plant, and equipment of $85 million. Use the book weights from this balance sheet to calculate the weighted average cost of capital if the firm has a cost of equity of 12%, a cost of debt of 5%, and a tax rate of 30%.

Reference no: EM132201281

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