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Grant Flowers has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's

Grant Flowers has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 9.0%, and its tax rate is 40%. The company's WACC is estimated to be 9.5%. What is Grant Flowers cost of common equity?

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