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Starling Corp. has a target capital structure of 40% debt and 60% common equity with no preferred stock. The company's outstanding bonds earn 9%

Starling Corp. has a target capital structure of 40% debt and 60% common equity with no preferred stock. The company's outstanding bonds earn 9% of return, and its tax rate is 40%. Starling's CFO estimates that the company's common stock cost is 12%. What is Starling's WACC?

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