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A firm has a 25% tax rate. Its cost of equity is estimated at 10% and its cost of debt is 6%. Currently, its capitalization

A firm has a 25% tax rate. Its cost of equity is estimated at 10% and its cost of debt is 6%. Currently, its capitalization is 50% equity and 50% debt. Its target capital structure is 60% equity and 40% debt. What WACC should you use for this firm?

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