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Calculate the cost of debt from the following information: company cost of capital = 15%, cost of equity capital = 16 per cent, D =

Calculate the cost of debt from the following information: company cost of capital = 15%, cost of equity capital = 16 per cent, D = $0.2 million, and V = $0.5 million.

A.

12.5%

B.

13.5%

C.

10.5%

D.

15.5%

get the answer but how to calculate it

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