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Jelco has a target debt - to - value ratio of . 5 5 . The pretax cost of debt is 8 . 6 percent,

Jelco has a target debt-to-value ratio of .55. The pretax cost of debt is 8.6 percent, the tax rate is 35 percent, and the unlevered cost of equity 13.4 percent. What is the target cost of equity?

  

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