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Consider a company with 100 in debt and 200 in equity. Assume that the cost of debt is 5% and the equity beta is 1.5.

Consider a company with 100 in debt and 200 in equity. Assume that the cost of debt is 5% and the equity beta is 1.5. The tax rate is 35%. The expected return on the market is 7% and the risk free rate is 1%. What is the WACC?

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