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A company has a beta of 1.6, pre-tax cost of debt of 5.5% and an effective corporate tax rate of 27%. 38% of its capital
A company has a beta of 1.6, pre-tax cost of debt of 5.5% and an effective corporate tax rate of 27%. 38% of its capital structure is debt and the rest is equity. The current risk-free rate is 0.7% and the expected market risk premium is 5.8%. What is this company's weighted average cost of capital? Answer in percent, rounded to two decimal places.
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