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3. (TCO D) A company has a capital structure of 40% debt and 60% equity. The YTM on the companys bonds is 9%, and the

3. (TCO D) A company has a capital structure of 40% debt and 60% equity. The YTM on the companys bonds is 9%, and the companys effective tax rate is 40%. The cost of equity is 13%. What is the companys WACC? Show your work. (Points : 10)

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