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QUESTION
Cost of Capital: An MNC has total assets of $100 million and debt of $20 million. The firm's before tax cost of debt is 12%, and its cost of...
Cost of Capital: An MNC has total assets of $100 million and debt of $20 million. The firm's before tax cost of debt is 12%, and its cost of financing with equity is 15%. The MNC has a corporate tax rate of 40%. What is the firms cost of capital?
