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ABC Corp. has an unlevered cost of capital of 13 percent and expected earnings before interest and taxes of $50,000. The company has $100,000 in

ABC Corp. has an unlevered cost of capital of 13 percent and expected earnings before interest and taxes of $50,000. The company has $100,000 in bonds outstanding that sell at par and have a coupon rate of 8 percent. Annual tax rate is 21%. What is the cost of equity?

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