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Your firm is financed 100% with equity and has a cost of equity capital of 11%. You are considering your first debt issue, which would
Your firm is financed 100% with equity and has a cost of equity capital of 11%. You are considering your first debt issue, which would change your capital structure to 31% debt and 69% 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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