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Firm A has the following capital structure Equity: 1 0 0 ( Market value: 8 2 0 , Beta: 1 . 2 , Rf: 3

Firm A has the following capital structure Equity: 100(Market value:820, Beta:1.2, Rf:3% Market risk premium: 12%), Reserves: 400 and Debt: 200(MV:180, Maturity 5 years, coupon 9%). Given this information, calculate the cost of capital for this firm based on market and book weights

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