The total book value of WTC's equity is $10 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 15%. The firm's bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to matu - rity on the bonds is 9%, and the firm's tax rate is 40%. Find the company's WACC. (LO13-1)
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