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Assume the following data for U&P company: Debt (D) = $120 million, Equity (E) = $360 million; rD = 6%; rf = 3%; rA =

Assume the following data for U&P company: Debt (D) = $120 million, Equity (E) = $360 million; rD = 6%; rf = 3%; rA = 12.5%, beta of equity = 1.20 calculate the cost of equity, ignore taxes.

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