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A) Kunitz Co. has no debt. Its cost of capital is 8.7 percent. Suppose Kunitz converts to a debt-equity ratio of 1.0. The interest rate

Kunitz Co. has no debt. Its cost of capital is 8.7 percent. Suppose Kunitz converts to a debt-equity ratio of 1.0. The interest rate on the debt is 6.3 percent. Ignore taxes for this problem.

Requirement 1:

What is the company

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