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A corporation wants to calculate its weighted average cost of capital. The firm has a 5% pre-tax cost of debt and a 15% cost of

A corporation wants to calculate its weighted average cost of capital. The firm has a 5% pre-tax cost of debt and a 15% cost of common equity. The firm does not have preferred stock outstanding and has a target capital structure of 50% debt and 50% common equity. If the tax rate is 20%, what is the firm's WACC?

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