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Chapter 20
Total market value = $9.3m + $0.729m = $10.029m
V e V d
WACC = ––––––– k e + ––––––– ‘k d(1 – T)’
V e + V d V e + V d
WACC = $9.3m/$10.029m × 11.3 + $0.729m/$10.029m × 7.7
WACC = 11.0%
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