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ABC Co. has a debt-to-equity ratio of 3:1 based on market valuation. In book value terms, the deb-to-equity ratio is 2:1. If ABC Co. can

ABC Co. has a debt-to-equity ratio of 3:1 based on market valuation. In book value terms, the deb-to-equity ratio is 2:1. If ABC Co. can issue new par value bonds with a coupon of 8%, its tax rate is 30% and its cost of equity capital is 15%, what is ABC Co.'s weighted average cost of capital?

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