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A firm has zero debt and an overall cost of capital of 12.9 percent. The firm...

A firm has zero debt and an overall cost of capital of 12.9 percent. The firm is considering a new capital structure having a debt to equity ratio of .60. The interest rate on the debt would be 7.85 percent and the corporate tax rate is 22 percent. What would be the cost of equity with the new capital structure if you include taxes. 17.3 15.3 10.8 16.1 12.9
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