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Shadow Corp. has no debt but can borrow at 7.6 percent. The firms WACC is currently 9.4 percent, and the tax rate is 35 percent.

Shadow Corp. has no debt but can borrow at 7.6 percent. The firms WACC is currently 9.4 percent, and the tax rate is 35 percent. If the firm converts to 50 percent debt, what will its cost of equity be?

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