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Brooks Robinson Motors has a target capital structure of 60% debt and 40% equity. The yield to maturity on the companys outstanding bonds is 9%,
Brooks Robinson Motors has a target capital structure of 60% debt and 40% equity. The yield to maturity on the companys outstanding bonds is 9%, and the companys tax rate is 35%. Robinsons CFO has calculated the companys WACC as 8.50%. What is the companys cost of equity capital?
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