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An all equity firm has a cost of capital of 7.8 percent. The firm is considering switching to a debt-equity ratio of .60 with a

An all equity firm has a cost of capital of 7.8 percent. The firm is considering switching to a debt-equity ratio of .60 with a pretax cost of debt of 5.4 percent. What will the firm's cost of equity be if the firm makes the switch? Ignore taxes. 9.58% 9.73% 10.15% 10.27% 9.24%

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