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Suppose that Z corporation has a capital structure that consists of 40% debt and 60% common equity. Its before-tax cost of debt is 7%, while

Suppose that Z corporation has a capital structure that consists of 40% debt and 60% common equity. Its before-tax cost of debt is 7%, while its cost of equity is 14%. If the appropriate tax rate is 35%, what is Z's WACC?

Group of answer choices

a.9.38%

b.14%

c.10.22%

d.7%

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