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Question (9). What is the cost of equity for a firm if the corporate tax rate is 40%? The firm has a debt-to- equity ratio

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Question (9). What is the cost of equity for a firm if the corporate tax rate is 40%? The firm has a debt-to- equity ratio of 1.5. If it had no debt, its cost of equity would be 16%. Its current cost of debt is 10%. A. 17.4% B. 18.4% C. 19.6% D. 21.4% E.None of the above

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