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Suppose that you are running a local coffee shop named JudyLee Coffee Corp and it has currently debt to equity ratio of 1.5 and its

Suppose that you are running a local coffee shop named JudyLee Coffee Corp and it has currently debt to equity ratio of 1.5 and its WACC of 12 percent. The cost of debt is 6 percent. The corporate tax rate is 35 percent.

What is its cost of equity capital?

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