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13. A company's cost of equity is 16.75% and its cost of debt is 6.3%. The company uses 60% equity financing and 40% debt financing.

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A company's cost of equity is 16.75% and its cost of debt is 6.3%. The company uses 60% equity financing and 40% debt financing. Assume all available earnings are immediately distributed to common shareholders and all the M&M assumptions are satisfied except the company's corporate tax rate is 25%. According to the M&M Propositions with taxes, what is the WACC for this company?

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