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4 . - Sangria Corporation has a target capital structure of 6 5 percent common stock and 3 5 percent debt. Its cost of equity

4 . -

Sangria Corporation has a target capital structure of

65

percent common stock and

35

percent debt. Its cost of equity is

16

percent, and the cost of debt is

6

percent. The relevant tax rate is

25

percent. What is Sangria's WACC?

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