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Consider a firm that has $14 million in debt, $1 million in preferred stock, and $29 million in equity. The rate of return for debt,
Consider a firm that has $14 million in debt, $1 million in preferred stock, and $29 million in equity. The rate of return for debt, preferred stock, and equity is 3%, 2%, and 14%, respectively. The corporate tax rate is 33%. What is the weighted average cost of capital? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer.
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