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A firm has a debt-equity ratio of .35, a pretax cost of debt of 8.5 percent, and a required return on assets of 11.7 percent.

A firm has a debt-equity ratio of .35, a pretax cost of debt of 8.5 percent, and a required return on assets of 11.7 percent. What is the cost of equity if you ignore taxes?

it can not be determined from the information provided

15.8%

13.9%

12.8%

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