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$95 million project is in evaluation, and the management decides to use both debt and common stocks to fund the project. After bonds are issued,
$95 million project is in evaluation, and the management decides to use both debt and common stocks to fund the project. After bonds are issued, the remaining balance of the $95 million capital budget will be financed with retained earnings (retained earnings belong to common stock). The marginal tax rate is 26%. Given the information above, what is the weighted average cost of capital for the coming year?
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