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The stock of Dratus Corp. has a beta of 0.8, treasury bills yield 4.5%, and the market portfolio offers an expected return of 13%. In

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The stock of Dratus Corp. has a beta of 0.8, treasury bills yield 4.5%, and the market portfolio offers an expected return of 13%. In addition to equity, Dratus finances 60% of its assets with debt that has a yield to maturity of 7%. The firm is in the 25% marginal tax bracket. Given this information, what is Dratus's weighted average cost of capital (WACC)? 7.67% 8.72% 7.59% 9.95%

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