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Jacque Ewing Drilling, Inc., has a beta of 0 . 8 5 and is trying to calculate its cost of equity capital. If the risk

Jacque Ewing Drilling, Inc., has a beta of 0.85 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 7 percent and the expected return on the market is 12 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 27 percent?

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