Current cost of equity capital for the firm

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CullumberCorp. currently has a WACC of 30percent. If the cost of debt capital for the firm is 12percent and the firm is currently financed with 40percent debt, then what is the current cost of equity capital for the firm? Assume that the assumptions in Modigliani and Miller's Proposition 1 hold.(Round answer to 2 decimal places, e.g. 17.54%.)

Reference no: EM132922132

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