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Bright Kitchen Company is financed by $4 million (market value) in debt and $6 million (market...

Bright Kitchen Company is financed by $4 million (market value) in debt and $6 million (market value) in equity. The cost of debt is 5% and the cost of equity is 12%. Calculate the weighted average cost of capital (WACC). Assume 21% tax rate.

8.78%

9.60%

6.29%

7.26%
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