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An unlevered firm has a value of $800 million. An otherwiseidentical but levered firm has $60 million in debt at a 5% interestrate, which is

An unlevered firm has a value of $800 million. An otherwiseidentical but levered firm has $60 million in debt at a 5% interestrate, which is its pre-tax cost of debt. Its unlevered cost ofequity is 2 answers

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