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What is the company cost of equity-jean outlet

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Reference no: EM132731504

The Jean Outlet is an all-equity firm but can borrow at 5.8 percent. The firm's WACC is currently 12.5 percent, and the tax rate is 28 percent. Consider taxes.

1. What is the company's cost of equity?

2. If the firm converts to 20 percent debt, what will its cost of equity be?

Reference no: EM132731504

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