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27. A company has a beta of 1.3, pre-tax cost of debt of 4.6% and an effective corporate tax rate of 22%. Assume 20% of

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27. A company has a beta of 1.3, pre-tax cost of debt of 4.6% and an effective corporate tax rate of 22%. Assume 20% of its capital structure is debt and the rest is equity. The current riskfree rate is 2% and the expected market risk premium is 7%. What is this company's weighted average cost of capital? a. 7.52% b. 9.60% c. 7.72% d. 9.80% e. 8.90%

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