What is the weighted average cost of capital
Course:- Financial Management
Reference No.:- EM13728602

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The family dollar company plans a $14 million expansion. The expansion is to be financed by selling $6 million in new debt and $8 million in new common stock. The before tax required rate of return on debt is 8% and the required rate of return on equity is 16%. If the company is in the 34% tax brackets what is the weighted average cost of capital.





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