Question: Answer the following question: Suppose the expected market return is 9% and the risk-free rate is 3%. Dino Inc. has a pre-tax cost of debt

Answer the following question:

Suppose the expected market return is 9% and the risk-free rate is 3%. Dino Inc. has a pre-tax cost of debt of 7%, an equity beta of 2.0 and pays a corporate tax rate of 30%. The firm has $480,000 of debt and $340,000 of common stock, both in market values. Based on this information, what would be Dino's weighted average cost of capital? Enter your answer in percentage rounded to two decimal places.

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