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A firm is financed 45% with equity and 55% with debt. Debt has a before-tax interest rate of 8.5%, tax rate 40%, weighted average cost

A firm is financed 45% with equity and 55% with debt. Debt has a before-tax interest rate of 8.5%, tax rate 40%, weighted average cost of capital 13.75%

What is the firm's cost of common equity?

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