What is the weighted average cost of capital

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ABC Inc. borrows money at 8.0%, sells bonds at 7.0%, and the purchasers of common stock require 15.0% rate of return. If the company has borrowed $40 million, sold $60 million in bonds, and sold $100 million worth of common stocks, what is the Weighted Average Cost of Capital (WACC)?

Reference no: EM131165403

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