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Lantern faces a 40% tax rate and has a 0.3 debt to equity ratio. Lantern's equity beta is 2.36, the risk-free rate is currently 3%

Lantern faces a 40% tax rate and has a 0.3 debt to equity ratio. Lantern's equity beta is 2.36, the risk-free rate is currently 3% and the market risk premium is 8%. What is the cost of capital or required rate of return to calculate the value of a stock using the Free Cash Flow Model Approach?

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