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Home Decor has a debt-equity ratio of .48. The cost of equity is 16.4 percent and the aftertax cost of debt is 4.2 percent. What

Home Decor has a debt-equity ratio of .48. The cost of equity is 16.4 percent and the aftertax cost of debt is 4.2 percent. What will the firm's cost of equity be if the debt-equity ratio is revised to .70?

18.21 percent
17.70 percent
13.69 percent
18.47 percent
17.89 percent

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