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A firm is funded with $690 million in equity and $1300 million in debt. The yield to maturity on bonds issued by the firm is
A firm is funded with $690 million in equity and $1300 million in debt. The yield to maturity on bonds issued by the firm is 15.00%. The tax rate is 25%. The firm has a beta of 2.00. The risk-free rate is 3.03%, and the expected return on the market is 13%. What is the cost of capital for this firm:
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