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A company has a beta of 1.5, pre-tax cost of debt of 5.7% and an effective corporate tax rate of 26%. 41% of its capital
A company has a beta of 1.5, pre-tax cost of debt of 5.7% and an effective corporate tax rate of 26%. 41% of its capital structure is debt and the rest is equity. The current risk-free rate is 0.6% and the expected market risk premium is 5.9%. What is this company's weighted average cost of capital? Answer in percent, rounded to two decimal places.
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