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7. A firm has a debt-equity ratio of 0.6 and pretax cost of debt of 10 percent. The industry average cost of unlevered equity is

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7. A firm has a debt-equity ratio of 0.6 and pretax cost of debt of 10 percent. The industry average cost of unlevered equity is 12.6 percent. What is the cost of levered equity if tax rate is 20 percent

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