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A firm has 65% probability of being worth $100 million and a 35% probability of being worth $130 million. There is one bond outstanding that

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A firm has 65% probability of being worth $100 million and a 35% probability of being worth $130 million. There is one bond outstanding that promises to pay $100 million at an interest rate of 7%. The cost of capital for the film's projects is 9% What is the expected return on the levered equity? Group of answer choices 2.5% 2.0% 4.5% 32.6%

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