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Calculating theWACC The following values apply to the Drop Corporation: rd = 7.5%, re = 13%, T = 38%, D = $100, and E = $200. What is the weighted average cost of capital?
The following questions are designed to test your ability to apply the concepts and techniques covered in the course. Answer them as fully as possible, identifying each by number. Each answer should be 3-4 pages in length.
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