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A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 0.025. Its overall cost of capital is 20 percentage points higher than

A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 0.025. Its overall cost of capital is 20 percentage points higher than its cost of debt. Assume no taxes. What is the firm's cost of equity, precise to three digits after the comma?

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