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Step 2: Estimate the WACCs

WACC1 = wdkd(1 - T) + wceks

= (0.6)(8%)(0.6) + 0.4(16.6%) = 9.5%.

WACC2 = wdkd(1 - T) + wceks

= (0.6)(8%)(0.6) + 0.4(19.1%) = 10.5%.

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