Question: Fusion Packaging is financed with 55% equity and 45% debt. The required rate of return on its debt is 6.7% and 14.5% on its equity.

Fusion Packaging is financed with 55% equity and 45% debt. The required rate of return on its debt is 6.7% and 14.5% on its equity. If the tax rate is 21%, what is Fusion's weighted-average cost of capital?

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