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A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 10 percent. Its overall cost of capital is 14 percent. What is

A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 10 percent. Its overall cost of capital is 14 percent. What is its cost of equity if there are no taxes?

a. 16 percent

b. 13 percent

c. 15 percent

d. 18 percent

If possible, could you please explain this in detail? Thank you

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