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TSB Inc. has a weighted average cost of capital of 8.6%. Its debt has a market value of $23 million and its equity has a

TSB Inc. has a weighted average cost of capital of 8.6%. Its debt has a market value of $23 million and its equity has a market value of $52 million. Its before-tax cost of debt is 4.3% and its marginal tax rate is 21%.

Attempt 1/3 for 10 pts.

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What is the company's cost of equity?

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