Acetate inc has equity with a market value of 26 million

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Acetate, Inc., has equity with a market value of $26 million and debt with a market value of $10.14 million. Treasury bills that mature in one year yield 6.4 percent per year, and the expected return on the market portfolio is 13.9 percent. The beta of Acetate's equity is 1.23. The firm pays no taxes.

What is the firm's weighted average cost of capital?

Reference no: EM13598111

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