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Text Motors has a target capital structure of 40% debt and 60% equity. The cost of debt financing is 9% and the company's tax rate

Text Motors has a target capital structure of 40% debt and 60% equity. The cost of debt financing is 9% and the company's tax rate is 40%. The CFO of Text Motors has calculated the company's WACC as 9.96%. What is their cost of equity capital? List out the steps for the answer.

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