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Calculate santa wacc

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Santa's Workshop Inc. shares are currently trading at $8.95 each. The market yield on Santa's debt is 5% and the firm's beta is 1.40. The risk-free rate is 3.25% and the expected return on the market (E (kM)) is 10%. The company's target capital structure is 45% debt and 55% equity. The corporate tax rate is 35%. Calculate Santa's WACC. Express your answer in percentage form rounded to two decimal places.

Reference no: EM133112603

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