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Apple can borrow in the debt market at 9%, and it currently has a debt ratio (D/V) of 40%. If the cost of equity is

Apple can borrow in the debt market at 9%, and it currently has a debt ratio (D/V) of 40%. If the cost of equity is 13%, what is the WACC? Assume that the corporate tax rate is 20%, and the M&M world of taxes holds true.

A. 10.68%

B. 9.44%

C. 7.80%

D. 8.00%

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