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A firm is 60% debt funded, has an after tax WACC of 8%, and can borrow at 8%. It has a tax rate of 30%.

A firm is 60% debt funded, has an after tax WACC of 8%, and can borrow at 8%. It

has a tax rate of 30%. What is its cost of equity?

Question 4 options:

11.0%

none of the given answers

16.0%

11.6%

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