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A firm has a debt- equity ratio of 1.0. The required return on the firms assets is 16.1% and the pretax cost of debt is
A firm has a debt- equity ratio of 1.0. The required return on the firms assets is 16.1% and the pretax cost of debt is 9.1%. Ignore taxes. What is the firm's cost of equity.
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Financial Markets And Institutions An Introduction To Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
3rd Edition
0073250937, 9780073250939
