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corporate finance please explain how to do it pleasssse A firm is funded with both equity and debt. The market value of a firm's stock

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A firm is funded with both equity and debt. The market value of a firm's stock is currently 225 million. The debt cost of capital for the firm is 5.9%. The firm issues new bonds with a market value of 90 million and uses the proceeds to buy shares of its own stock with an equal value. This causes the firm's equity cost of capital to increase by 2.66%. Find the firm's new equity cost of capital. O 13.22% O 11.22% O 11.88% Correct! O 12.55% O 13.88%

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