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Business, 10.10.2019 04:30 mprjug6

Wool express (we) has a capital structure of 30% debt and 70% equity. we is considering a project that requires an investment of$2.6 million. to finance this project, we plans to issue 10-year bonds with a coupon interest rate of 12%. each of these bonds has a $1,000 face value and will be sold to net we $980. if the current risk-free rate is 7% and the expected market return is 14.5%, what is the weighted cost of capital for we? assume we has a beta of 1.20 and a marginal tax rate of 40%.

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