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A firm has $16 million in debt with an interest rate of 8%. Common equity is worth $24 million and preferred shares total $10 million.

A firm has $16 million in debt with an interest rate of 8%. Common equity is worth $24 million and preferred shares total $10 million. The cost of common equity is 14% and the cost of preferred equity is 11%. The corporate tax rate is 40%. Calculate the weighted average cost of capital.

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