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ABC company's equity beta is 1.2. The market risk premium is 7% and the risk-free rate is 10%. The company has a debt-equity ratio is

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ABC company's equity beta is 1.2. The market risk premium is 7% and the risk-free rate is 10%. The company has a debt-equity ratio is 2:3. Its pretax cost of debt is 14%. If the tax rate is 35%, what is the cost of capital? [5]

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