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The Desert Outlet has an equity beta of 1.5, a debt beta of 0.1, and a cost of equity of 14.5 percent. The risk-free rate

The Desert Outlet has an equity beta of 1.5, a debt beta of 0.1, and a cost of equity of 14.5 percent. The risk-free rate of return is 4.25 percent. The firm's debt-equity ratio is 0.2. What is the firm's asset cost of capital?

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