What would be its new cost of equity

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HJD Corporation uses no debt, its beta is 1.0, and its tax rate is 35%. HJD is considering moving to a capital structure with 30% debt and 70% equity. Assume the risk-free rate is 5% and the market risk premium is 5%. What is HJD's current cost of equity, and what would be its new cost of equity?

Reference no: EM131070688

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