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Ferington Inc. reported the following financial data for the period ended 2019. Sales $50,000 Variable costs $10,000 Fixed rent $25,000 Interest expense $5,000 Market value

Ferington Inc. reported the following financial data for the period ended 2019.

Sales $50,000

Variable costs $10,000

Fixed rent $25,000

Interest expense $5,000

Market value of equity $15,000

Book value of debt $25,000

Tax rate 20%

The cost of equity of Ferington Inc. is closest to:

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