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A firm has a debt-to-asset ratio of 35% (based on the market value of assets). The firm's bondholders require a return of 3.75%, and the

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A firm has a debt-to-asset ratio of 35% (based on the market value of assets). The firm's bondholders require a return of 3.75%, and the equity holders require a return 8%. The firm's marginal tax-rate is 35%. Estimate the firm's weighted-Average-Cost-of-Capital (WACC)

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