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An investor has a marginal tax rate of 32%. He borrows funds for a property inve...
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An investor has a marginal tax rate of 32%. He borrows funds for a property investment project at a cost of 5.4%, and the LTV (loan-to-value ratio) is 80%. If the after-tax weighted cost of capital for the property investment is 6.5%, what is the cost of equity for the investor?
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