Accounts cost of common equity : Computation of Corporate tax rate

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					              Sub: Accounts                                             Topic: Cost of common equity and WACC

              Question:

              Cost of common equity and WACC

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              Midwest Electric Company (MEC) uses only debt and common equity. It can borrow unlimited
              amounts at an interest rate of Rd=10% as long as it finances at its target capital structure, which
              c
				
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Description: Cost of common equity and WACC : Midwest Electric Company (MEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of Rd=10% as long as it finances at its target capital structure, which calls for 45% debt and 55% common equity.
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