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A company has $108 million in outstanding bonds, and 10 million shares of stock currently trading at $40 per share.The bonds pay an annual coupon

A company has $108 million in outstanding bonds, and 10 million shares of stock currently trading at $40 per share.The bonds pay an annual coupon rate of 7% and is trading at par. The company's beta is 1.1, its tax rate is 40%, the risk-free rate is 5%, and the market risk premium is 4%. What is this firm's WACC?

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