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A company has a beta of 0.7, pre-tax cost of debt of 4% and an effective corporate tax rate of 18%. The weight of debt
A company has a beta of 0.7, pre-tax cost of debt of 4% and an effective corporate tax rate of 18%. The weight of debt in its capital structure is 20% and the rest is equity. The current risk-free rate is 0.8% and the expected market return is 7.2%. What's this company's weighted average cost of capital? Answer in percent, round 2 decimal places.
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