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A firm has 1,500,000 shares of stock outstanding with a price per share equal to $10. The firm's only debt consists of 8,000 bonds outstanding,

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A firm has 1,500,000 shares of stock outstanding with a price per share equal to $10. The firm's only debt consists of 8,000 bonds outstanding, priced at $1,125 each. The cost of equity is 12 percent, the cost of debt is 9 percent, and the corporate tax rate is 34 percent. If the firm expects to maintain the current capital structure going forward, what is the WACC? 9.73% O 10.88% 8.21% O 7.18% O 10.00%

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