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A firm has issued 5,000 10 year zero coupon bonds outstanding (par value 1,000) with a YTM of 4%. It has 100,000 common shares outstanding.

A firm has issued 5,000 10 year zero coupon bonds outstanding (par value 1,000) with a YTM of 4%. It has 100,000 common shares outstanding. The stock has a Beta of 1.1. The risk free rate is 2%, and the market return is 8%. The firm is expected to pay a 2.00 dividend and has a growth rate of 3%. If the firm tax rate is 20%, what is the companys WACC?

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