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The company cost of capital is the correct discount rate for any project undertaken by the company.
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- The weighted-average cost of capital, after tax, for a firm with a 65/35 debt/equity split, 8% cost of debt, 15% cost of equity, and a 35% tax rate would be: A. 7.02%.B. 8.63%.C. 10.80%.D. 13.80%.
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