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A corporation operates with perfect capital markets. Currently, the company has no debt and it has a cost of equity of 12%. What would happen

A corporation operates with perfect capital markets. Currently, the company has no debt and it has a cost of equity of 12%. What would happen to the company's cost of capital and cost of equity if it converts to a debt to equity ratio of 1.5

The corp. can issue bonds with a YTM of 7%

Please help asap

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