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Archimedes Levers is financed by a mixture of debt and equity. You have the following information about its cost of capital: r E = ?

Archimedes Levers is financed by a mixture of debt and equity. You have the following information about its cost of capital:

rE = ? % rD = 13 % rA = ? %
?E = 1.6 ?D = ? ?A = ?
rf = 11 % rm = 16 % D/V = 0.55

Suppose now that Archimedes repurchases debt and issues equity so that D/V = 0.35. The reduced borrowing causes rD to fall to 12%. Calculate the rE, rA, ?E, ?D, and ?A. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

rE %
rA %
?E
?D
?A

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