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Maple Corporation currently uses no debt, but its new CFO is considering changing the capital structure to 40% debt and 60% equity by issuing bonds

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Maple Corporation currently uses no debt, but its new CFO is considering changing the capital structure to 40% debt and 60% equity by issuing bonds and using the proceeds to repurchase and retire some common shares. Given the data shown below, by how much would this recapitalization change the firm's cost of equity? Do not round your intermediate calculations. Risk-free rate 2% Market Risk Premium 6% Current beta, bu 1.2 Tax rate |40%

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