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A company has a capital structure of 40% debt and 60% equity. The YTM on the companys bonds is 9%, and the companys effective tax

A company has a capital structure of 40% debt and 60% equity. The YTM on the companys bonds is 9%, and the companys effective tax rate is 40%. The CFO has estimated the companys WACC to be 9.96%. What is the companys cost of equity? Show your work.

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