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The market value of AAA's equity is 40 million USD, and the market value of its risk-free debt is 56 million USD. If the required

The market value of AAA's equity is 40 million USD, and the market value of its risk-free debt is 56 million USD. If the required rate of return on the equity is 0.1 and that on the debt is 0.06, calculate the company's cost of capital, precise to three digits after the comma. (Assume no taxes.)

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