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A company expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at
A company expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. The company has an equity cost of capital of 13%, a debt cost of capital of 7%, and it has a 35% corporate tax rate. If the company maintains a .5 debt to equity ratio, then what is Flagstaff's pre-tax WACC?
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