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De Leon Imports is currently 100% equity financed, but would like to have a debt to equity ratio of 0.5. If their cost of equity
De Leon Imports is currently 100% equity financed, but would like to have a debt to equity ratio of 0.5. If their cost of equity is currently 14.1%, what will it be after the move? Their cost of debt is 3.1% and their tax rate is 38%.
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