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35. A company's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is18.6%, and the pretax cost of debt is 9.4%,

image text in transcribed 35. A company's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is18.6%, and the pretax cost of debt is 9.4%, what is the cost of ordinary share equityassuming a tax rate of 34%? a. 19.90%b. 20.90%c. 21.70%(1. 22.73%

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