Question: Cede & Co . expects its EBIT to be $ 7 7 , 3 4 7 every year forever. The firm can borrow at 1

Cede & Co. expects its EBIT to be $77,347 every year forever. The firm can borrow at 12%. Cede currently has no debt, and its cost of equity is 24%. The tax rate is 32%.
What is the firms cost of equity capital after borrowing $45,000 and using the proceeds to repurchase shares (i.e., after recapitalization)?(Answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations.)

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