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A company has 1 . 5 million shares of equity outstanding, which currently sell for 1 0 per share. Its publicly traded debt had a

A company has 1.5 million shares of equity outstanding, which currently sell for
10 per share. Its publicly traded debt had a total face value of 3 million with
a currently priced yield of 9%. The debt was recently quoted at 96% of face
value. Your analysts estimate that this firm has a beta of 0.85.
The country in which the firm operates has sovereign treasury bonds trading
at 2%. The relevant market index trades at 12% at the moment.
If the relevant corporate tax rate is 30%, what is the post-tax WACC of the
firm?

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