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GaltIndustries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2.Included inGalt's assets is $90 million in cash and risk-free

GaltIndustries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2.Included inGalt's assets is $90 million in cash and risk-free securities.Assume the risk-free rate is 4% and the market risk premium is 6%. There is no tax.

Galt's WACC is closest to:

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