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Your task is to determine the cost of capital for RC Ontario. The company has a tax rate of 4 0 % and 1 0

Your task is to determine the cost of capital for RC Ontario. The company has a tax rate of 40% and 100,000 common shares outstanding with a price of $33.18554 per share. The estimated beta for the common stock is 2. The expected market return is 10%, and the risk-free rate is also 4%.
Additionally, the company has two outstanding debt issuances. The first issuance consists of 1,000 semi-annual coupon bonds, each with a face value of $1,000, an annual coupon rate of 10%, and currently trading at a yield to maturity of 10%. The second issuance includes 1,000 zero-coupon bonds, each with a face value of $1,000, trading at 70% of their face value and maturing in 12 years.
Your task is to calculate the weighted average cost of capital for RC Ontario based on the provided information.

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