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(b) What is Company B's cost of equity? Assume all the Modigliani and Miller (M&M) assumptions are satisfied. Also, assume you own 10% of Company

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(b) What is Company B's cost of equity? Assume all the Modigliani and Miller (M\&M) assumptions are satisfied. Also, assume you own 10% of Company B's equity and can borrow at 5% per year. Use the M\&M arbitrage argument to show how you could increase your wealth without changing your future expected cash flows. Hint: Remember to show annual cash flows before and after

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