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Skolits Corp. has a cost of equity of 10.8 percent and an aftertax cost of...

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Skolits Corp. has a cost of equity of 10.8 percent and an aftertax cost of debt of 4.14 percent. The company's balance sheet lists long-term debt of $290,000 and equity of $550,000. The company's bonds sell for 94.7 percent of par and market-to-book ratio is 2.50 times. If the company's tax rate is 35 percent, what is the WACC? Multiple Choice

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