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Suppose that TipsNToes, Inc.'s capital structure features 45 percent common equity, 55 percent debt, and its cost of equity is 14 percent, while its before-tax

Suppose that TipsNToes, Inc.'s capital structure features 45 percent common equity, 55 percent debt, and its cost of equity is 14 percent, while its before-tax cost of debt is 8 percent. It has no preferred stock. If the appropriate tax rate is 25%, what will be TipsNToes's after-tax WACC?

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