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An analyst gathers the following information about a company:
| Target D/E | 0.80 |
|---|---|
| Current D/E | 0.65 |
| Yield to maturity | 4% |
| Cost of equity | 9% |
| Tax rate | 30% |
The WACC to be used in financial analysis is closest to:
A
6.24%
B
6.56%
C
6.78%