Target debt-equity ratio-what is cost of equity

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Reference no: EM131873245

Garnet, Inc., has a target debt-equity ratio of 9.00. Its WACC is 1.0 %, and the tax rate is 6 %.

If you know that the after-tax cost of debt is 10.0%, what is the cost of equity? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

Reference no: EM131873245

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