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ABC Inc. has one million shares outstanding and its most recent share price is $14. ABC Inc. also has $20 million in bond financing. If

ABC Inc. has one million shares outstanding and its most recent share price is $14. ABC Inc. also has $20 million in bond financing.

If the cost of equity is 17.75%, the before tax cost of debt is 5.28% and assuming a tax rate of 40%,

WACC of ABC Inc.=

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