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4. Ridgeway Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the companies outstanding bonds is 8%,

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4. Ridgeway Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the companies outstanding bonds is 8%, and the company's tax rate is 30%. Ridgeway's Chief Financial Officer has calculated the company's weighted average cost of capital as 9.39%. What is the company's cost of equity? 3 points

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