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Sunshine corp hired a new CFO and changed firms policy from zero leverage to some leverage. They decided to add enough leverage till the firm

Sunshine corp hired a new CFO and changed firms policy from zero leverage to some leverage. They decided to add enough leverage till the firm value increased by 20%. Assume cashflows are level perpetual. Use the data below:

Risk free Rate = 5%

Market Return = 12%

Unlevered Beta = 1.5%

Unlevered cost of capital = 15.5%

What is Sunshine's WACC with leverage?

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