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The Beta Corporation has an optimal debt ratio of 26 percent. Its cost of equity capital is 12.5 percent and its before-tax borrowing rate is

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The Beta Corporation has an optimal debt ratio of 26 percent. Its cost of equity capital is 12.5 percent and its before-tax borrowing rate is 4.6 percent. Given a marginal tax rate of 36 percent, calculate the cost of equity for an equivalent all-equity financed firm. (X.XX\%)

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