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XYZ Company has a capital structure consisting of 60% equity and 40% debt. The cost of equity is 10%, and the pre-tax cost of debt

XYZ Company has a capital structure consisting of 60% equity and 40% debt. The cost of equity is 10%, and the pre-tax cost of debt is 7%. The company's tax rate is 25%. What is the company's weighted average cost of capital (WACC)?

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