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BoredSheepShip has $225,000 worth of equity and $75,000 worth of debt on its balance sheet. The average interest rate on its debt is 6 percent.

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BoredSheepShip has $225,000 worth of equity and $75,000 worth of debt on its balance sheet. The average interest rate on its debt is 6 percent. Suppose BoredSheepShip expects EBIT to be $36,000. Ignore taxes. What is the cost of equity for BoredSheepShip

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