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16. WACC Corp. currently has no debt outstanding but can borrow at an interest rate of 8.0%. The company's WACC (unlevered/no debt) is 13.0% and
16. WACC Corp. currently has no debt outstanding but can borrow at an interest rate of 8.0%. The company's WACC (unlevered/no debt) is 13.0% and it has a tax rate of 25%. If the company adjusts its capital structure to 40% debt and 60% equity, what will be its cost of equity?
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