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ABC Co. is 40% financed by debt, yielding 10%. The risk free rate is 4%, the expected market risk premium is 7.5%, and the beta

ABC Co. is 40% financed by debt, yielding 10%. The risk free rate is 4%, the expected market risk premium is 7.5%, and the beta of the companys common stock is .6. The tax rate is 40%. What is the company cost of capital? (round to 1 decimal point)

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