Question: Use the information for the question(s) below. Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free

 Use the information for the question(s) below. Flagstaff Enterprises expected to

Use the information for the question(s) below. Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of 11%, a debt cost of capital of 7%, and it has a 35% corporate tax rate. If Flagstaff maintains a 0.4 debt to equity ratio, then Flagstaff's pre-tax WACC is closest to (\%) (2 decimal places)

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