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Question description

 Fox Scientific Solutions has a capital structure that is 60% common equity & 40% debt. There is no preferred equity. The market risk premium is 6% & the risk free rate is 3%. The beta of the common stock is 2.0. The bonds have a yield to maturity of 5% and the firm’s tax rate is 40%.

What is the weighted average cost of capital for Fox?

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(Top Tutor) Daniel C.
School: UCLA
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