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ABC Corporation has a target capital structure of 7 5 percent common stock and 2 5 percent debt. Its cost of equity is 1 4

ABC Corporation has a target capital structure of

75

percent common stock and

25

percent debt. Its cost of equity is

14

percent, and the cost of debt is

8

percent. The relevant tax rate is

35

percent. What is the company

s WACC?

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