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You are trying to value a private company. The average beta for firms in this industry is 1.4 and the average debt equity ratio is

You are trying to value a private company. The average beta for firms in this industry is 1.4 and the average debt equity ratio is 0.8. The private company has no debt. What is the WACC for this private company if the risk free rate is 2% and the market risk premium is 5.5%? (Tax rate is 40%)

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