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Christophorus Company can obtain debt financing at 12% and can offer common shares at $80 per share. It has a marginal income tax rate of

Christophorus Company can obtain debt financing at 12% and can offer common shares at $80 per share. It has a marginal income tax rate of 25%. The yield on US Treasury securities is 3%. The market risk premium is 6.0%, and the firms beta is 1.1. It has a targeted debt-to-equity ratio of 1:1.

What is its weighted average cost of capital?

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