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A firm, based on market value , has 70% stock financing and 30% debt.The cost of equity financing averages 13%.The pre-tax cost of debt financing

A firm, based on market value, has 70% stock financing and 30% debt.The cost of equity financing averages 13%.The pre-tax cost of debt financing averages 7%.Tax rate is .40Calculate the firms weighted average cost of capital (WACC) from this data.

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