Question: Draper Dynamics finances its operations with $30,000,000 in debt and $50,000,000 in stockholders' equity. The debt carries a 6% interest rate, and stockholders require a

Draper Dynamics finances its operations with $30,000,000 in debt and $50,000,000 in stockholders' equity. The debt carries a 6% interest rate, and stockholders require a 12% return.

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What is Draper's weighted-average cost of capital?

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