The weighted average cost of capital for a firm, assuming all

three Modigliani and Miller assumptions hold,

is$10$percent$.$ What is the current cost of equity capital

for the firm if the cost of debt for the firm

is$7$percent$,$ and the firm is$70$percent

financed with debt?$($Round answer to $2$ decimal

places, e$.$g$\mathrm{.}17\mathrm{.}54\%.)$

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