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A company currently has a Beta of 1.35 and the prevailing T-bill rate is 1.5% and the market risk premium is 6.5%. It has outstanding

A company currently has a Beta of 1.35 and the prevailing T-bill rate is 1.5% and the market risk premium is 6.5%. It has outstanding long-term debt with a yield to maturity of 7.5% and a marginal income tax rate of 30%.

Determine the WACC for the company if their percentage of debt is 40%.

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