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You are analysing the cost of capital for a company that is financed with 65 per cent equity and 35 per cent debt. The after

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You are analysing the cost of capital for a company that is financed with 65 per cent equity and 35 per cent debt. The after tax cost of debt capital is 8 per cent, while the cost of equity capital is 20 per cent for the company. The tax rate is 30% and the company book equity value is $2 millions. What is the overall cost of capital for the company? 0 20.0% O 14.0% O 12.2% O 15.8%

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