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1. New Horizon Inc. is considering investing in a new project. New Horizon feels that its optimal capital structure is composed of 50% equity (common

1. New Horizon Inc. is considering investing in a new project. New Horizon feels that its optimal capital structure is composed of 50% equity (common stocks), and 40% long-term debt. The cost of equity (common stock) is 12%, while debt is 4% respectively. Assume a corporate tax rate of 21%.

What is New Horizon's weighted average cost of new capital (WACC)?

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