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An all - equity firm has a cost of capital of 1 3 . 3 percent. The firm is considering switching to a debt -

An all-equity firm has a cost of capital of 13.3 percent. The firm is considering switching to a debt-equity ratio of .35 with a pretax cost of debt of 7.5 percent. The tax rate is 35 percent. What will be the firm's levered cost of equity if they make this switch?
15.25%
14.21%
16.07%
14.62%
15.38%

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