Financial intermediaries relatively
Indirect finance is more important than direct finance in most countries in part because of information costs associated with lending. Why are financial intermediaries relatively more effective at reducing these costs?
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General Technology's capital is from the following channels: 30% from debt paying 9% interest rate, and 70% from common equity. The cost of equity is 13%. The marginal tax rate is 40%. What's the WACC for General Technology?
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