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Bargain Jargon, Inc., an advertising firm, has a capital structure that consists of 6 0 % common stock and 4 0 % long - term

Bargain Jargon, Inc., an advertising firm, has a capital structure that consists of 60% common stock and 40% long-term debt. In order to calculate Beebop's weighted average cost of capital, an analyst has accumulated the following information:
The company currently has 25-year bonds outstanding with annual coupon payments of 3.5%. The bonds sell for $950
The risk-free rate is 1.25%
The market risk premium is 6%
The beta on Bargain's common stock is 1.15.
The company's retained earnings are sufficient so that they do not have to issue any new common stock.
The company's tax rate is 38%.
Given this information, what is Bargain's WACC?
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