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A firm has $4 billion in A-rated bonds with an expected interest rate of 3.5%. Its equity, worth $7 billion, is estimated to offer an

A firm has $4 billion in A-rated bonds with an expected interest rate of 3.5%. Its equity, worth $7 billion, is estimated to offer an expected geometric rate of return of about 10.8% per year. What is this firm's overall asset cost of capital? (4 decimal places please)

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