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Suppose that TipsNToes, Inc.'s capital structure features 60 percent equity, 40 percent debt, and its cost of equity is 10 percent, while its before-tax cost

Suppose that TipsNToes, Inc.'s capital structure features 60 percent equity, 40 percent debt, and its cost of equity is 10 percent, while its before-tax cost of debt is 9 percent. If the appropriate weighted average tax rate is 25 percent, what will be TipsNToes's after-tax WACC?

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