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Using the following information, what cost of equity should TNJ Corporation use if they are planning on entering the same industry as Sam & Sam

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Using the following information, what cost of equity should TNJ Corporation use if they are planning on entering the same industry as Sam & Sam Inc., and TNJ plans on maintaining their current capital structure. Enter your answer as a percent rounded to 2 decimal places. TNJ Corporation: AA Rated Debt: $24 Market Value of Equity: $50 Sam & Sam Inc.: AA Rated Debt: $55 Market Value of Equity: $150 Beta: 0.65 Market Information: Equity Risk Premium: 6.50% Risk Free Rate: 3.05%

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