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A company has a target capital structure of 30% debt, 60% common equity, and preferred stock of 10%. The yield to maturity on the companys

A company has a target capital structure of 30% debt, 60% common equity, and preferred stock of 10%. The yield to maturity on the companys outstanding bonds is 9%, and its tax rate is 21%. The cost of preferred stock is 5%. The CFO estimates that the companys WACC is 9.96%. What is the companys cost of equity?

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