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Reactive Industries has the following capital structure. Its corporate tax rate is 20%. Security Market Value Required Rate of Return Debt $10 million 6% Preferred

Reactive Industries has the following capital structure. Its corporate tax rate is 20%.

Security Market Value Required Rate of Return
Debt $10 million 6%
Preferred stock 20 million 8
Common stock 50 million 12

What is its WACC?

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