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Problem 5. Sarp Industries want to fund their new expansion project through shares and bonds. The weights of each are 60% and 40% respectively. the

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Problem 5. Sarp Industries want to fund their new expansion project through shares and bonds. The weights of each are 60% and 40% respectively. the company's beta is 0.7, the risk-free rate is 5% and the market risk premium is 10%. The yield to maturity on the bonds is 8% and the tax rate is 15%. What is WACC equal to

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