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A t-shirt manufacturing company, Tom's Tees, estimates its cost of debt at 7% and its cost of equity at 25%. The company has $7 million

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A t-shirt manufacturing company, Tom's Tees, estimates its cost of debt at 7% and its cost of equity at 25%. The company has $7 million in debt and $10 million in equity. The company's effective tax rate is 20%. What is the company's weighted average cost of capital (WACC)? [wacc] 12.6% 18.0% 27.0% $2,990,000 22.3%

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