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Calculate the weighted average cost of capital using the following data for a company with outstanding debt and common stock. a. Market value of debt:

Calculate the weighted average cost of capital using the following data for a company with outstanding debt and common stock.

a. Market value of debt: $102 million

b. Market value of equity: $78 million

c. Bonds YTM: 5.20%

d. Risk-free rate: 6%

e. Beta: 0.85

f. Average market return: 14%

g. Corporate tax rate: 21%

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