What is the companys cost of equity capital

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Lisa Marie Cosmetics has a target capital structure of 25% debt and 60% equity. The yield to maturity on the company's outstanding bonds is 6%, and the company's tax rate is 40%. Marie's CFO has calculated the company's WACC as 7.83%. What is the company's cost of equity capital? Round your answer to two decimal places.

Reference no: EM13263781

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