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Able Company's shareholders are receiving a 22.5% return and its bondholders get a 14% return. Based on a 50 percent debt/equity ratio, with no preferred

Able Company's shareholders are receiving a 22.5% return and its bondholders get a 14% return. Based on a 50 percent debt/equity ratio, with no preferred stock and a 46 percent tax rate, find Able's weighted average cost of capital.

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