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A firm has a debt-equity ratio of 1.0. The required return on the firm's assets is 10.1% and the pre-tax cost of debt is 4.1%.

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A firm has a debt-equity ratio of 1.0. The required return on the firm's assets is 10.1% and the pre-tax cost of debt is 4.1%. Ignore taxes. What is the firm's cost of equity? 19.3% 18.1% 26.1% 16.1%

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