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Rancho Cucamonga Inc. finances its assets with 25% debt (liabilities) and 75% shareholders' equity. Debt cost 4% and equity cost 8%. Ignoring income taxes, Rancho's

Rancho Cucamonga Inc. finances its assets with 25% debt (liabilities) and 75% shareholders'

equity. Debt cost 4% and equity cost 8%. Ignoring income taxes, Rancho's weighted average cost

of capital is what?

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