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Fudzis Ltd.s income before interest and tax is GHS 900,000. The firm currently employs a debt of GHS 300,000 at a cost of 10%. The

Fudzis Ltd.s income before interest and tax is GHS 900,000. The firm currently employs a debt of GHS 300,000 at a cost of 10%. The weighted average cost of capital of the firm is 12%. What is the firms cost of equity? (assume the value of the firm is computed as EBIT discounted from perpetuity)

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