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ABC Company has a cost of equity of 10%. EBIT is 100. They currently have no debt. Find the new cost of equity if they

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ABC Company has a cost of equity of 10%. EBIT is 100. They currently have no debt. Find the new cost of equity if they changed to using a capital structure that used 50% debt and 50% equity. The interest rate on the debt is 5% and the tax rate is 40%. of

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