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A company's CFO wants to maintain a target debt-to-equity ratio of 1/3. If the WACC is 13.5%, and the pretax cost of debt is 9.4%,
A company's CFO wants to maintain a target debt-to-equity ratio of 1/3. If the WACC is 13.5%, and the pretax cost of debt is 9.4%, what is the cost of common equity assuming a tax rate of 25%?
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