A firm uses only debt and equity in its capital structure, Financial Management

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A firm uses only debt and equity in its capital structure

A firm uses only debt and equity in its capital structure. The firm's weight of debt is 40 percent. The firm could issue new bonds at a yield to maturity of 9 percent and the firm has a tax rate of 30 percent. If the firm's WACC is 11 percent, what is the firm's cost of equity?

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Financial Management: A firm uses only debt and equity in its capital structure

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