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Tulsa, Inc. has debt of $3,000 (face and market value). This debt has a coupon rate of 7% and pays interest annually. The expected annual
Tulsa, Inc. has debt of $3,000 (face and market value). This debt has a coupon rate of 7% and pays interest annually. The expected annual earnings before interest and taxes is $1,200, the tax rate is 34%, and the unlevered cost of capital is 12%. What is the firm's cost of equity?
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