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You are estimating a company's weighted average cost of capital ( WACC ) . The company has a debt - to - equity ratio, D

You are estimating a company's weighted average cost of capital (WACC). The company has a debt-to-equity ratio, D/E of 1.0, which means that the company has the same amount of debt and equity values (D/E =1-> D = E). The required rate of return on the company's stock is 15%. The yield to maturity of the company's outstanding bonds is 6%. The company is subject to a 21% income tax rate. What is the company's WACC in percentage (%)?
Hint: You can assume any value for the equity (or debt, but not both). For example, you can set the equity value E =1 to determine the value for D and V.
Note: Write your answer in % terms (do not round). For example, write 2.54(%) instead of 0.0254.

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