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What is the weighted average cost of capital

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Reference no: EM132417210

ABCLtd is raising$180 million for a new project. It can raise $126 million via debt with a pre-tax cost of 6%; raise the rest via equity with a cost of 22%. The corporate tax rate is 16.5%. What is the weighted average cost of capital (WACC) for this project?

What is the effect of a bond's YTM on its price?

Reference no: EM132417210

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