A company has 100 million shares outstanding trading for 8


A company has 100 million shares outstanding trading for $8 per share. It also has $900 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 12%, and its effective corporate tax rate is 40%, what is its weighted average cost of capital? (Show workings)

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Finance Basics: A company has 100 million shares outstanding trading for 8
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