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Your business has zero debt, a cost of equity of 21%, a cost of debt equal to 8%, and a tax rate of 22%. You
Your business has zero debt, a cost of equity of 21%, a cost of debt equal to 8%, and a tax rate of 22%. You decide to target a new capital structure ratio of 25% debt, 75% equity. What is your new cost of equity? (12.34% entered as 12.34 or 0.1234)
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