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ABC Inc has a target debt-equity ratio of 1.1. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent.

ABC Inc has a target debt-equity ratio of 1.1. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent?

12.53 percent

11.01 percent

11.76 percent

12.78 percent

13.11 percent

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