You were hired as a consultant to Dover Company, and you were provided with the following data: Target capital structure: 40% debt, 10% preferred, and 50% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 7.50%, the cost of retained earnings is 10.50%, and the tax rate is 40%. The firm will not be issuing any new stock. What is the firm's WACC?
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