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ABC Company and XYZ Company are identical firms in all respects except for their capital structure. ABC is all - equity financed with $ 6
ABC Company and XYZ Company are identical firms in all respects except for their capital structure. ABC is allequity financed with $ in stock. XYZ uses both stock and perpetual debt; its stock is worth $ and the interest rate on its debt is percent. Both firms expect EBIT to be $ Ignore taxes. What is the cost of equity for ABC and XYZDo not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
ABC cost of equity
XYZ cost of equity
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