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Brutus Co. is a private firm. A potential project requires an investment of $625,000, and the firm borrows $350,000 at 9%. The firm's equity risk

Brutus Co. is a private firm. A potential project requires an investment of $625,000, and the firm borrows $350,000 at 9%. The firm's equity risk is similar to PCL Construction, a public firm with a beta of 1.75. The risk-free rate is 2% and the market risk premium is 6%.

What is the firm's WACC? (Assume a corporate tax rate of 20%.)

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