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A firm has a debt-to-equity ratio of 1. Its levered cost of equity ( RS ) is 13.8%, and its pretax cost of debt (
A firm has a debt-to-equity ratio of 1. Its levered cost of equity ( RS ) is 13.8%, and its pretax cost of debt ( RB ) is 7%. Company Tax is 30%. Assuming MM (1963) world, calculate its unlevered cost...
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