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A firm has a debt-equity ratio of 1.5, a pretax cost of debt of 7.5 percent, and an unleveled cost of equity of 11.6 percent.

A firm has a debt-equity ratio of 1.5, a pretax cost of debt of 7.5 percent, and an unleveled cost of equity of 11.6 percent. What is the cost of equity if you ignore taxes?

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