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Target capital structure is 30% debt; the interest rate on new debt is 6%. Cost of retained earnings is 12.75% and tax rate is 25%.

Target capital structure is 30% debt; the interest rate on new debt is 6%. Cost of retained earnings is 12.75% and tax rate is 25%. There will be no new stock issued. What is the WACC?

Please show work for formulas.

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