Weighted average cost of capital

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Reference no: EM13809617

The Black Bird Company plans an expansion. The expansion is to be financed by selling $32 million in new debt and $71 million in new common stock. The before-tax required rate of return on debt is 11.74% percent and the required rate of return on equity is 13.63% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

Reference no: EM13809617

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