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A firm has $500 in debt at a cost of 7%, a 34% tax rate, a...

A firm has $500 in debt at a cost of 7%, a 34% tax rate, a total firm value of $1.000, and an unlevered return of 12.5%. What is the WACC?

Select one:

a. 11.84%

b. 10.38%

c. 9.24%

d. 10.57%

e. 9.88%

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