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ASAP A full-equity firm has a cost of equity of 15%. If the company issues debt such that the debt-to-equity ratio is 1.2, what is

ASAP

A full-equity firm has a cost of equity of 15%. If the company issues debt such that the debt-to-equity ratio is 1.2, what is its cost of equity if its cost of debt is 10% and there are no taxes or other imperfections?

a. 21%.

b. 18%.

c. 15%.

d. 10%.

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