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Their capital structure consists of: $5 million in loans at a stated rate of 5%, $5...

Their capital structure consists of: $5 million in loans at a stated rate of 5%, $5 million in bonds that sold at par for $1000 (flotation costs were $26 per bond, coupon rate 4.5%, 10 years to maturity) $10 million in common stock with the most recent dividend of $1.20, growth rate of 5%, current stock price of $35. 40% tax rate.

What is their WACC?

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