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A company's CFO wants to maintain a target debt-to-equity ratio of 1/3. If the WACC is...

A company's CFO wants to maintain a target debt-to-equity ratio of 1/3. If the WACC is 18.6%, and the pretax cost of debt is 9.4%, what is the cost of common equity assuming a tax rate of 33%?

16.40%

20.90%

21.70%

23.93%

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jeff jeffy answered 1 year ago
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