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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 all-equity financed with $650,000 in stock. XYZ uses both stock and perpetual debt; its stock is worth $325,000 and the interest rate on its debt is 6.5 percent. Both firms expect EBIT to be $71,000. Ignore taxes. What is the cost of equity for ABC and XYZ?(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
ABC cost of equity =
%
XYZ cost of equity

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