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A company has a beta of 1.4. It pays tax at a marginal rate of 30%. The risk-free rate is 2.5%, and the market's equity

A company has a beta of 1.4. It pays tax at a marginal rate of 30%. The risk-free rate is 2.5%, and the market's equity risk premium is estimated to be 6%.

Using CAPM, what is the cost of equity capital? Input your answer to two decimal places.

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