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ABC Corp is currently has a debt - to - enterprise value ratio of 2 0 % . Its current cost of equity is 1
ABC Corp is currently has a debttoenterprise value ratio of Its current cost of equity is and its current cost of debt is The firm wants to permanently
change its financing policy to target a debttoenterprise value ratio of The cost of debt associated with this new financing policy will be Assuming perfect
markets, what will ABC's cost of equity be after it implements this new financing policy? Express your answer in percent and round to two decimals do not include the
symbol in your answer
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