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Determining the corporate tax rate

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Reference no: EM131317177

A firm has a debt-to-equity ratio of 0.62. It's cost of equity is 20%, and it's cost of debt is 15%.

If the corporate tax rate is 34%, what would it's cost of equity be if the firm was all equity financed? (Answer in decimal form and round answer to 4 decimal places, round intermediate calculations to 5 decimal places).

Reference no: EM131317177

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