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ABC has an unleveraged required return of 25%. ABC rebalances its capital structure each year to a target of L = .20. T* = .15. ABC can borrow
ABC has an unleveraged required return of 25%. ABC rebalances its capital structure each year to a target of L = .20. T* = .15. ABC can borrow currently at a rate of rd = 8%. What is ABC’s WACC?