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$6.30 O The Backwoods Lumber Co. has a debt-equity ratio of .80. The firm's required return on assets is 22 12% and its cost of
$6.30 O The Backwoods Lumber Co. has a debt-equity ratio of .80. The firm's required return on assets is 22 12% and its cost of equity is 18%. What is the pre-tax cost of debt based on MM Proposition || * ?with no taxes ) (2 ) 4.50% O 7.40% O 3.90% O 5.10%
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