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He Patrick Company S Cost Of Common Equity Is 16 Percent Itsbefore Tax Cost Of D

he Patrick Company’s cost of common Equity is 16 percent, itsbefore-tax cost of debt is 13 percent and its marginal tax rate is40 percent. The stock sells at book value. Using thefollowing balance sheet, calculate Patrick’s WACC.Assets$120240$1,1521,728$2,880

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