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You are asked to calculate the weighted average cost of capital. The company has a cost of equity of 12.5%, a cost of debt of
You are asked to calculate the weighted average cost of capital. The company has a cost of equity of 12.5%, a cost of debt of 5.8%, a marginal tax rate of 25%, current stock price of $41.00, shares outstanding of 2,250,000, bonds outstanding of 250,000, and bonds are currently quoted for 105. What is the company's WACC?
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