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Suppose the cost of capital of the Blossom Company is 13 percent. If Blossom has a capital structure that is 50 percent debt and 50

Suppose the cost of capital of the Blossom Company is 13 percent. If Blossom has a capital structure that is 50 percent debt and 50 percent equity, its before-tax cost of debt is 5 percent, and its marginal tax rate is 20 percent, then its cost of equity capital is closest to: a_15.4 percent., b_19.4 percent., c_17.4 percent., d_21.4 percent.

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