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The Beta Corporation has an optimal debt ratio of 4 0 percent. Its cost of equity capital is 1 1 percent, and its before -

The Beta Corporation has an optimal debt ratio of 40 percent. Its cost of equity capital is 11 percent, and its before-tax borrowing rate is 9 percent. Given a marginal tax rate of 35 percent.
Required:
Calculate the weighted-average cost of capital.
Calculate the cost of equity for an equivalent all-equity financed firm.
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