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Ivy Fashions is expected to raise $ 1 0 0 million capital by selling 6 0 million bonds and use $ 4 0 retained earnings.

Ivy Fashions is expected to raise $100 million capital by selling 60 million bonds and use $40 retained earnings. The firm has a cost of equity 14 percent and a pre-tax cost of debt 6 percent with a tax rate of 28 percent. What is the firm's weighted average cost of capital?
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