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CoffeeCarts has a cost of equity of 14.3%, an effective cost of debt of 3.5%, and is financed 71% with equity and 29% with debt. What is this firm's WACC?

CoffeeCarts has a cost of equity of 14.3%, an effective cost of debt of 3.5%, and is financed 71% with equity and 29% with debt. What is this firm's WACC?

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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CoffeeCarts has a cost of equity of 14.3%, an effective cost of debt of 3.5%, and is financed 71% with equity and 29% with debt. What is this firm's WACC?
Transcribed Image Text:CoffeeCarts has a cost of equity of 14.3%, an effective cost of debt of 3.5%, and is financed 71% with equity and 29% with debt. What is this firm's WACC?
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