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Gateway Services' CFO is interested in estimating the company's WACC and has collected the following information: The company has 30-year, 7.5% annual coupon bonds that

Gateway Services' CFO is interested in estimating the company's WACC and has collected the following information: The company has 30-year, 7.5% annual coupon bonds that have a face value of $1,000 and sell for $1105. The risk-free rate is 2.5%. The expected return on the market is 8%. The stock's beta is 1.8. The company's tax rate is 25%. The company's target capital structure consists of 70% equity and 30% debt. \What is Gateway's WACC?

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