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Goofball Corp. has a target debt - equity ratio of 1 . 2 5 . It's WACC is 1 0 . 4 % , the

Goofball Corp. has a target debt

-

equity ratio of

1.25 .

It's WACC is

10.4 %,

the tax rate is

35 %,

and the after tax cost of debt is

6.8 % .

What is the cost of equity?

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