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Assume the M&M assumptions with taxes hold and the corporate tax rate is equal to 30%. A firm's cost of equity at D/E=1 is equal
Assume the M&M assumptions with taxes hold and the corporate tax rate is equal to 30%. A firm's cost of equity at D/E=1 is equal to 12%. Assuming a (pre-tax) cost of debt equal to 2%, what is the firm's cost of equity without debt (D/E=0)
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