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Consider a firm that has $11 million in debt, $2 million in preferred stock, and $30 million in equity. The rate of return for debt,
Consider a firm that has $11 million in debt, $2 million in preferred stock, and $30 million in equity. The rate of return for debt, preferred stock, and equity is 4%, 2%, and 11%, respectively. The corporate tax rate is 33%. What is the weighted average cost of capital? (Percentage rounded to two decimal places please)
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