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A firm has no debt but can borrow at 8 percent. The firm's WACC is currently 11 percent, and the tax rate is 35 percent.

A firm has no debt but can borrow at 8 percent. The firm's WACC is currently 11 percent, and the tax rate is 35 percent. If the firm converts to 50 percent debt, what will its cost of equity be? 13.38% 11% 14% 9.5% 12.95%

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