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A business has no debt in its capital structure. Its cost of capital is 10%. The company is considering a new capital structure with 60%

A business has no debt in its capital structure. Its cost of capital is 10%. The company is considering a new capital structure with 60% debt (Debt / Firm Value). The cost of debt would be 8%. Assuming there are no taxes or other imperfections, the cost of equity (Equity) with the new capital structure would be: Options for question 11: 9% 14% 13%

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