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What is the cost of equity

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Question - A firm has a debt-equity ratio of .40, a WACC of 16%, and a yield-to-maturity on its debt of 13%. Ignoring taxes, what is the cost of equity?

A. 7.8%

B. 9.6%

C. 11.8%

D. 15.2%

E. 17.2%

Reference no: EM132622170

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