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5. (10 points) If a firm has a pre-tax cost of debt of 6%, an expected return of 11% on its stock, and a 35%
5. (10 points) If a firm has a pre-tax cost of debt of 6%, an expected return of 11% on its stock, and a 35% tax rate, when it has 40% debt and 60% equity, what is the firm's WACC
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