An analyst gathers the following information about a company's capital sources: | Target weight of debt | 25% | |-----------------------------|------| | Target weight of equity | 75% | | Before-tax marginal cost of debt | 4% | | Marginal cost of equity | 12% | If the marginal tax rate is 20% and interest expense is tax deductible, the company's WACC is: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz