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Suppose that TapDance, Inc.’s capital structure features 70 percent equity, 30 percent debt, and that its...

Suppose that TapDance, Inc.’s capital structure features 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 6 percent, while its cost of equity is 11 percent. Assume the appropriate weighted average tax rate is 21 percent and TapDance estimates they cannot make any use of the interest tax shield in the foreseeable future. What will be TapDance’s WACC?

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