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Take It All Away has a cost of equity of 10.78 percent, a pretax cost of debt of 5.43 percent, and a tax rate of
Take It All Away has a cost of equity of 10.78 percent, a pretax cost of debt of 5.43 percent, and a tax rate of 21 percent. The company's capital structure consists of 76 percent debt on a book value basis, but debt is 36 percent of the company's value on a market value basis. What is the company's WACC?
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