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Joseph Smith, Amtrax's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is 16.5%, and the pretax cost of debt is

Joseph Smith, Amtrax's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is 16.5%, and the pretax cost of debt is 8%, what is the cost of common equity assuming a tax rate of 40%?

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