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A firm has a debt-to-equity ratio of 1.0. If it had no debt, its cost of equity would be 14%. Its cost of debt is

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A firm has a debt-to-equity ratio of 1.0. If it had no debt, its cost of equity would be 14%. Its cost of debt is 8%. What is its cost of equity if there are no taxes? 18% 16% 20% O 21%

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