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A firm has 60% probability of being worth $100 million and a 40% probability of being worth $120 million. There is one bond outstanding that

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A firm has 60% probability of being worth $100 million and a 40% probability of being worth $120 million. There is one bond outstanding that promises to pay $90 million at an interest rate of 6%. The cost of capital for the firm's projects is 9%. What is the expected return on the levered equity

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