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Q1-3 A firms D/E ratio is 0.6 The before tax cost of debt is 5% Risk free interest is 4% Beta is 1.25 Risk premium

Q1-3 A firms D/E ratio is 0.6
The before tax cost of debt is 5%
Risk free interest is 4%
Beta is 1.25 Risk premium is 7.5%
The firms tax rate is 35%
Required: Calculate the firms WACC.
Round your answer to 4 decimals

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