The Beta Corporation has an optimal debt ratio of $40$ percent. Its cost of equity

capital is $10$ percent, and its before$-$tax borrowing rate is $7$ percent. Given a marginal tax rate of $30$ percent.

Required:

a

b$.$ Calculate the cost of equity for an equivalent all$-$equity financed firm.

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Requirled B

Calculate the cost of equity for an equivalent all$-$equity financed firm.

Note: Do not round intermediate calculations. Round your answer as a percent round