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ATR Company has a debt-to-equity ratio of 3/5. If the WACC is 19.10% and the pretax cost of debt is 10.70%, what is the cost

ATR Company has a debt-to-equity ratio of 3/5. If the WACC is 19.10% and the pretax cost of debt is 10.70%, what is the cost of common equity assuming a tax rate of 39%? (No Excel answer please).

a. 20.50%

b. 37.96%

c. 30.56%

d. 24.14%

e. 26.64%

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