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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.

15.5%

b.

13.5%

c.

12.5%

d.

10.5%

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