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In order to fund its flagship project, Rozan Industries issued 250000 KD worth of debt...

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Accounting

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In order to fund its flagship project, Rozan Industries issued 250000 KD worth of debt and 550000 KD worth of shares. The yield to maturity on bonds is equal to 7% and the required rate of return on shares is equal to 8.6%. The corporate tax rate is equal to 15%. Calculate the WACC of this project. Note: Show your steps in the reasons box

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