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Consider company XYZ that is getting 84% of its funding through bonds and the rest through shares. Its marginal tax rate is equal to 4%.

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Consider company XYZ that is getting 84% of its funding through bonds and the rest through shares. Its marginal tax rate is equal to 4%. The yield to maturity on its bonds is 5% and the required rate of return on shares is equal to 8%. Calculate the WACC. (write your answer in decimal points, at least three digits after the decimal place)

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