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Accounting

Problem:

The Conservative Corporation has determined its weighted average cost of capital to be 13%. It has a capital structure of 60% debt, and 40% equity, with the before-tax cost of debt estimated at 10%.

If the firm's marginal tax rate is 30%, its cost of equity capital is closest to. Please answer in proper manner and show all computations

Choose one:

20.2%
16.1%
22%
18%

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167624

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