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A firm has a debt-equity ratio of .64, a pretax cost of 8.5%, and a required return on assets of 12.6%. What is the cost

A firm has a debt-equity ratio of .64, a pretax cost of 8.5%, and a required return on assets of 12.6%. What is the cost of equity if you ignore taxes?

15.22%

11.12%

8.06%

8.55%

16.38%

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