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14 You gather the following information on Costmart's financing o Market value of debt-522,500,000 Book value of debt = $18,000,000 Pre-tax cost of debt -

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14 You gather the following information on Costmart's financing o Market value of debt-522,500,000 Book value of debt = $18,000,000 Pre-tax cost of debt - 6% Cost Mart's beta-1.4 Risk-free rate-3% Market risk premium - 8% Shares outstanding - 1,000,000 Current share price-540 Book value of equity - 510,000,000 Tax rate=4 Which of the following is closest to the firm's WACC? 10.4 7424

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