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A company has a beta of 1.4, 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 1.4, pre-tax cost of debt of 5% and an effective corporate tax rate of 20%. The weight of debt in its capital structure is 60% and the rest is equity. The current risk-free rate is 2% and the expected market return is 7.5%. What is this company's weighted average cost of capital? Answer in percent, rounded to one decimal place.
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