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Winter's Toyland has a debt-equity ratio of 0.65. The pre-tax cost of debt is 8.5 percent and the required return on assets is 16 percent.
Winter's Toyland has a debt-equity ratio of 0.65. The pre-tax cost of debt is 8.5 percent and the required return on assets is 16 percent. Calculate the cost of equity ignoring taxes.
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