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Oceania Co. has a before-tax cost of debt of 4% and cost of common equity of 10%. The company's marginal tax rate is 30%. The company does not have any preferred stock. the company's capital structure has 20% debt and 80% common equity, then Oceania's weighted average cost of capital (WACC) is closest to 0 9.6% O 8.6% 8.8% O 7.8%
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