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An unlevered firm with a cost of capital of 10% announces that it will issue bonds. The firm's new capital structure will be a mix
An unlevered firm with a cost of capital of 10% announces that it will issue bonds. The firm's new capital structure will be a mix of 30% equity and 70% debt. Find the new cost of equity if the cost of debt is 7% and the tax rate is 40%.
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