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Your firm is financed 100% with equity and has a cost of equity capital of 15%. You are considering your first debt issue, which would
Your firm is financed 100% with equity and has a cost of equity capital of 15%. You are considering your first debt issue, which would change your capital structure to 29% debt and 71% equity. If your cost of debt is 6%, what will be your new cost of equity? Assume no change in your firm's WACC due to the change in capital structures. The new cost of equity is (Round to two decimal places.)
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