Find firm-s wacc if there is only debt and common equity


The market value of May East Enterprises' debt is $200 million and the total market value of the firm is $600 million. The cost of equity is 15%, the cost of debt is 8%, and the tax rate is 34%. Assuming there is only debt and common equity outstanding, what is the firm's WACC?

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Microeconomics: Find firm-s wacc if there is only debt and common equity
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