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A company has a beta of 0.9, pre-tax cost of debt of 5% and an effective corporate tax rate of 20%. The weight of debt
A company has a beta of 0.9, pre-tax cost of debt of 5% and an effective corporate tax rate of 20%. The weight of debt in its capital structure is 40% and the rest is equity. Suppose the current risk-free rate is 3% and the expected market return is 8%. What is this company's weighted average cost of capital? Answer in percent, rounded to two decimal places.
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