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Suppose the cost of capital of Grand Ltd is 10 per cent. Its capital structure is 70 per cent debt and 30 per cent equity.

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Suppose the cost of capital of Grand Ltd is 10 per cent. Its capital structure is 70 per cent debt and 30 per cent equity. Its before- tax cost of debt is 7 per cent, and its corporate tax rate is 30 per cent Calculate Grand Ltd's cost of equity (1 Mark) Answer: Do not include a percentage sign. Answers must be expressed as a decimal to 4 places

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