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A company's stock market value is 80 bn, and the value of its debt is 20 bn. The yield on its debt is 6%. The

A company's stock market value is 80 bn, and the value of its debt is 20 bn. The yield on its debt is 6%. The corporate tax rate is 30%. It estimates that the required return on its stock is 12%. What is its weighted average cost of capital?

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