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Marx and Spender Corp. currently has a WACC of 25 percent. If the cost of debt capital for the firm is 11 percent and the

Marx and Spender Corp. currently has a WACC of 25 percent. If the cost of debt capital for the firm is 11 percent and the firm is currently financed with 23 percent debt, then what is the current cost of equity capital for the firm? Assume that the assumptions in Modigliani and Millers Proposition 1 hold. (Round answer to 2 decimal places, e.g. 17.54%.) Please show breakdown of equation.

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