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A firm has a debt-to-equity ratio of 1.75 and a weighted average cost of capital of 12%. Its cost of debt is 7%. The corporate tax rate is 0%. Assuming zero bankruptcy costs, what would be the cost of equity if the firm were financed with no debt?

[Express your answer in percentage terms (eg. 5). Round your final answer to the closest whole number (zero decimal places)]

Approximate annual rate (%) =

Reference no: EM132500841

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