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A company's debt has a YTM of 8 % . The company's beta equal 2 . 0 . The risk free rate equals 3 %

A company's debt has a YTM of

8 % .

The company's beta equal

2.0 .

The risk free rate equals

3 % .

The market return is

10 % .

The tax rate

= 20 % .

The company is financed

60 %

with debt,

40 %

with equity. What is the company's cost of capital?

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