Cmpute firms weighted average cost of capital where firms

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A firm has to re-evaluate its weighted average cost of capital following a significant issue of debt. The firm now has financed 40% of its assets using debt and 60% using equity. Calculate the firms weighted average cost of capital where the firm's borrowing rate on debt is 8.6%,  it faces a 35% tax rate, and the common stockholders require a 19.5% rate of return.

The firms weighted average cost of capital is?

Reference no: EM13476348

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