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A firm has a debt-equity ratio of .52 , a pretax cost of debt of 6.5 percent, and a required return on assets of 12 percent. Ignoring taxes, what is the cost of equity?
a. 20.36 percent
b.
,12.00
percent
c.
,14.86
percent
d. 12.86 percent
e. 14.36 percent
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