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A firm has only two funding sources, debt and equity. Their percentage of debt is 31%, their tax rate is 21.9%, and their pretax cost
A firm has only two funding sources, debt and equity. Their percentage of debt is 31%, their tax rate is 21.9%, and their pretax cost of debt is 3.96%. If the required return on their equity is 9.82%, then what is their weighted average cost of capital? State your answer as a percentage with two decimal places and not in decimal form (i.e. 13.21 not .1321).
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