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12-04-2024
Business

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Buggins Incorporated is financed equally by debt and equity, each with a market value of $1.6 million. The cost of debt is 5.6%, and the cost of equity is 10.6%. Assume that the initial market value of the company is $3.2 million. What is the weighted average cost of capital (WACC) for Buggins Incorporated?

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