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The WACC for a firm is 12 percent. You know that the firm is financed with $90 million of equity and $110 million of debt.

  1. The WACC for a firm is 12 percent. You know that the firm is financed with $90 million of equity and $110 million of debt. The cost of debt capital is 7 percent. What is the cost of equity for the firm?

A)

13.00%

B)

14.27%

C)

16.67%

D)

18.11%

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