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NVX Ltd. has an outstanding loan of $50 million with a bank, and the interest rate on the loan is 2.5%. NVX Ltd. has a second type of debt which is a bond issue that the company sold 5 years ago for $40 million. The market value of these bonds today is $35 million. The effective annual yield on these bonds is 5.5%. The company has also 10 million ordinary shares outstanding with a current price of $4.2 per share. The Beta of the ordinary share is 1.7, the market risk premium is 9% and the risk free rate is 1%. NVX Ltd. has a 30% corporate tax rate. Compute NVX Ltd's weighted average cost of capital (WACC).

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