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You were hired as a consultant to Quigley Company, whose target capital structure is 3 5 % debt, 1 0 % preferred, and 5 5

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 5.17%, the yield on the preferred is 8.60%, the cost of retained earnings is 13.46%, and the tax rate is 42%. The firm will not be issuing any new stock. What is Quigley's WACC?
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