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An all equity firm has a cost of capital of 15 percent. The firm is considering switching to a debt-equity (D/E) ratio of .65 with

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An all equity firm has a cost of capital of 15 percent. The firm is considering switching to a debt-equity (D/E) ratio of .65 with a pretax cost of debt of 7.5 percent. What will the firm's cost of equity be if the firm makes the switch? Ignore taxes 20.25% 18.21% 17.67% 19.88% 21.38% 0 0

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