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Baba Tech is a pure-play in the online retailing industry. It has a leverage ration (D/V) of 20% and a cost of equity of 12%.

Baba Tech is a pure-play in the online retailing industry. It has a leverage ration (D/V) of 20% and a cost of equity of 12%. What is the business risk of the online retailing industry? ( Cost of debt is 5%, corporate tax rate is 20% )

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