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TangyDays Ltd. has a levered and unlevered cost of equity of 10% and 9% respectively. The D/E ratio is 1.75. If TangyDays' capital is partly

TangyDays Ltd. has a levered and unlevered cost of equity of 10% and 9% respectively. The D/E ratio is 1.75. If TangyDays' capital is partly financed by a 6% p.a. loan, what must be the tax rate applicable to the firm?

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