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Consider a firm that has 2 6 % of debt. The rate of return for debt is 6 % and the rate of return for

Consider a firm that has

26 %

of debt. The rate of return for debt is

6 %

and the rate of return for equity is

14 % .

The corporate tax rate is

30 % .

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.

Enter your response below.

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