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AC Cruises has a debtequity ratio of 1.17. The cost of equity is 12.3 percent and the pretax cost of debt is 7 percent. What

AC Cruises has a debtequity ratio of 1.17. The cost of equity is 12.3 percent and the pretax cost of debt is 7 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 35 percent?

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46.08%

53.92%

63.73%

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