Jelco has a target debt$-$to$-$value ratio of $\mathrm{.}55.$ The pretax cost of debt is $8\mathrm{.}6$ percent, the tax rate is $35$ percent, and the unlevered cost of equity $13\mathrm{.}4$ percent. What is the target cost of equity?

  

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To calculate the target cost of equity using the ModiglianiMiller Proposition w... View the full answer