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ATR Company has a debt-to-equity ratio of 1/5. If the WACC is 18.20% and the...

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Finance

ATR Company has a debt-to-equity ratio of 1/5. If the WACC is 18.20% and the pretax cost of debt is 8.80%, what is the cost of common equity assuming a tax rate of 43%?

a. 21.84%

b. 20.84%

c. 21.50%

d. 16.03%

e. 20.08%

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