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AAA company recently hired you as a consultant to estimate the companys WACC. You have obtained the following information. The firm's noncallable bonds have 5.98%

AAA company recently hired you as a consultant to estimate the companys WACC. You have obtained the following information. The firm's noncallable bonds have 5.98% YTM. The companys tax rate is 30%. The risk-free rate is 4%, the market risk premium is 5%, and the stocks beta is 1.10. The target capital structure consists of 30% debt and the balance is common equity. What is its WACC?

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