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

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