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Assume your company shows a debt-equity ratio of 1.99 and it pays no taxes. What is your companys cost of equity capital if the beta
Assume your company shows a debt-equity ratio of 1.99 and it pays no taxes. What is your companys cost of equity capital if the beta of an identical unlevered firm is 0.49? The market portfolio's return is 11.59%, and the risk-free rate is 4.65%.
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