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The Tree House has a pretax cost of debt of 6.4 percent and a return on assets of 11 percent. The debtequity ratio is .42.

The Tree House has a pretax cost of debt of 6.4 percent and a return on assets of 11 percent. The debtequity ratio is .42. Ignore taxes. What is the cost of equity? 12.93% 9.07% 14.11% 13.35% 13.58%

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