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Suppose that Tap Dance, Inc.'s, capital structure features 60 percent equity, 40 percent debt, and that its before-tax cost of debt is 10 percent, while
Suppose that Tap Dance, Inc.'s, capital structure features 60 percent equity, 40 percent debt, and that its before-tax cost of debt is 10 percent, while its cost of equity is 15 percent. Assume the appropriate weighted average tax rate is 34 percent. What will be TapDance's WACC? (Round your answer to 2 decimal places.)
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