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An all equity firm has a cost of capital of 12 percent. The firm is considering switching to a debt-equity ratio of .55 with a

An all equity firm has a cost of capital of 12 percent. The firm is considering switching to a debt-equity ratio of .55 with a pretax cost of debt of 8 percent. What will the firm's cost of equity be if the firm makes the switch? Ignore taxes.

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