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What is the company weighted average cost of capital

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Question - Best Roofer Inc. has maintained a target debt-equity ratio of 0.45 for many years and the company is taxed at 30%. The company only issued debt and common stocks. If shareholders require a return of 25% and the pre-tax cost of debt is 10.5%, then what is the company's weighted average cost of capital?

Reference no: EM133094205

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