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10 pts Dreathy Inc. has a weighted average cost of capital (WACC) of 15%. $700,000 in 9% debt and $700,000 in equity. If both debt

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10 pts Dreathy Inc. has a weighted average cost of capital (WACC) of 15%. $700,000 in 9% debt and $700,000 in equity. If both debt and equity are shown at market values, and the firm pays no taxes, what is the expected return on equity? How can the expected return on equity be reduced? 15.00% add debt 12.00%; reduce debt O 21.00%; reduce debt O 7.50%; add debt Previous Next Not saved Subm

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