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. Assume that a campany has debt - equity ratio of 1.2 and after tax cost of debt is 5.7% and Weighted Average Cost of

. Assume that a campany has debt - equity ratio of 1.2 and after tax cost of debt is 5.7% and Weighted Average Cost of Capital is 8.9 percent. What is the value of cost of equity? Is it cheaper to use debt or equity?

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