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Your company has the capital structure weights, W E = .60, W P = .20, and W D = .20. Also, the costs of component

Your company has the capital structure weights, WE = .60, WP = .20, and WD = .20. Also, the costs of component capital, RE = 12%, RP = 8%, and RD = 6%. What is its WACC if its tax rate is 40%?

26%

8.67%

9.52%

12.40%

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