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Let's pretend you want to estimate the Weighted Average Cost of Capital for a company. It currently has $25 million in debt, $3 million in

Let's pretend you want to estimate the Weighted Average Cost of Capital for a company. It currently has $25 million in debt, $3 million in cash, and $41 million in equity. Their bonds currently have a yield to maturity of 3.5% and they have a tax rate of 30%. The firm beta is 1.5, the risk-free rate is 3.1% and the expected market return is 7.3%. What is the Weighted Average Cost of Capital of a firm?

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