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A firm has a capital structure with $10 in equity and $9 of debt. The cost of equity capital is 0.2 and the pretax cost

A firm has a capital structure with $10 in equity and $9 of debt. The cost of equity capital is 0.2 and the pretax cost of debt is 0.07. If the marginal tax rate of the firm is 0.37 compute the weighted average cost of capital of the firm.

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