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4 March, 11:00

If D is the market value of a firm's debt, E the market value of that same firm's equity, V the total value of the firm (E+D), RD the yield on the firm's debt, TC is the corporate tax rate, and RE the cost of equity, the weighted average cost of capital is:

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  1. 4 March, 13:17
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    The Weighted average cost of capital is

    (D*RD * (1-TC)) / (V) + (RE*E) = weighted average cost of capital
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