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Waldorf Company has two sources of funds: long-term debt with a market and book value...

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Waldorf Company has two sources of funds: long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital hat has a mark value of $4 million (book value of $2 million). Waldorf Company has profit centers in the following locations with the following operating Vicomes, total assets, and curent liabilities. The cost of equity capital is 12%, while the tax rate is 25% Waldorf has two operating divisions, the East division and the West division, with the following financial measures for the current year Total Assetso Current Liabilities Operating Income East Division $6,000,000 $400,000 $1,080,000 West Division $6,000,000- $600,000 $1,020,000- Waldorfs after-tax cost of debt is 0300 1033 0900 1200 Question 38 of 402 Moving to the next question prevents changes to this answer ? -N9112 NE

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