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QUESTION

Life Balance, Inc has found that its cost of common equity is 15% and its cost of debt capital is 9%.

Life Balance, Inc has found that its cost of common equity is 15% and its cost of debt capital is 9%. If the firm is financed with 6 Million of common shares (market value) and 4 Million of debt what is the after tax weighted average cost of capital (WACC) for the co,mpany if it is subject to a 30% marginal tax rate?

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