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A company is currently in this situation: (1) tax rate, T = 21% ; (2) value of debt, D = $4.3m; (3) rd = 5.4%

A company is currently in this situation: (1) tax rate, T = 21% ; (2) value of debt, D = $4.3m; (3) rd = 5.4% ; (4) rs = 16.5% ; (5) shares of stock outstanding, n = 1,000,000; and (6) stock price, P = $65. The firms market is stable and it expects no growth, so all earnings are paid out as dividends. The debt consists of bonds. Compute the WACC.

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