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Consider an M&M world with no taxes. When a firm is 30% debt financed, its cost of debt is 6% and cost of equity is

Consider an M&M world with no taxes. When a firm is 30% debt financed, its cost of debt is 6% and cost of equity is 12%. When the firm increases debt to 50%, assuming that debt still costs 6%, what is the cost of equity?

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