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4.- Sangria Corporation has a target capital structure of 65 percent commonstock and 35 percent debt. Its cost of equity is 16 percent, and the
4.- Sangria Corporation has a target capital structure of 65 percent commonstock 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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