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Its capital structure consists of 40% debt and 60% common equity. The company has 20 years bonds outstanding with a 9% annual interest rate that

Its capital structure consists of 40% debt and 60% common equity.
The company has 20 years bonds outstanding with a 9% annual interest rate that is trading at par.
The companys tax rate is 40%
The risk free rate is 5.5 %
The market rate is 10.5 %
The stocks beta is 1.4

Calculate WACC :

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