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JNK can borrow money at 9% and its cost of capital if it uses no financial leverage is 11%. It has a debt-to-equity ratio of

JNK can borrow money at 9% and its cost of capital if it uses no financial leverage is 11%. It has a debt-to-equity ratio of 1.0, the cost of debt is 8%, and weighted average cost of capital is 10%. What is the cost of equity for JNK?

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