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WACC = Weighted Cost of Equity + Weighted Cost of debt*(1tax

Question

WACC = Weighted Cost of Equity + Weighted Cost of debt*(1-tax

rate)

(7.69%*37%)+(6.79%*63%)*(1-20%) = 6.27%

Recalculate the market value WACC, but now assume that Tesla is a profitable firm, with a tax rate of 22%:

Finance