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14. A company's CFO wants to maintain a target debt-to-equity ratio of 25%. If the WACC is 9%, and the pre-tax cost of debt is

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14. A company's CFO wants to maintain a target debt-to-equity ratio of 25%. If the WACC is 9%, and the pre-tax cost of debt is 2%, what is the cost of common equity assuming a corporate tax rate of 40% ? (4 points)

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