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Business, 04.07.2020 18:01 ineedhelp2285

CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 40 % and collects the following information. If it plans to finance 11 % of the new liquor-focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 5.1 %, a risk-free rate of 2.7 %, and a market risk premium of 5.3 %. g

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