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A firm is financed with $2M of debt and $8M of common equity. If the after-tax cost of debt is 12% and the cost of

A firm is financed with $2M of debt and $8M of common equity. If the after-tax cost of debt is 12% and the cost of common equity is 6%, what is the weighted average cost of capital (WACC)?

a.	7.2%
	b.	6%
	c.	18%
	d.	9%

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