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Cash flow from assets ( CFFA ) was $ 9 0 0 last year, of which interest expense was $ 8 5 and will continue

Cash flow from assets (CFFA) was $900 last year, of which interest expense was $85 and will continue forward at $85 indefinitely. (Retiring any interest-bearing debt would eliminate this $75 charge...) You expect CFFA to grow by 17% next year, 7% the following year, and then 4% forever each year starting in year 3, going forward. The risk-free rate is 3.50%. The Equity Risk Premium is 5.25%. Beta for this firm is 2. The cost of debt capital is 8%. D/E is 0.5. The tax rate is 40%.
What is the cost of equity capital for the company? *** Round to 2 decimal places. What is the WACC for the company? *** Round to 2 decimal places

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