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Calculate the companies WACC. -Target capital structure is 20% debt and 80% equity -Long-term government bonds yielding 3% -Company pays 250 bp above comparable government

Calculate the companies WACC.

-Target capital structure is 20% debt and 80% equity

-Long-term government bonds yielding 3%

-Company pays 250 bp above comparable government bonds for its debt

-Tax Rate is 30%

-Market Risk Premium is 5%

-Levered Beta is 1.18

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