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Find the cost of equity. Cost of debt = 7% Cost of capital (unlevered) = 12% $3,000,000 debt (selling at par value). Firm value (levered)

Find the cost of equity.

Cost of debt = 7%

Cost of capital (unlevered) = 12%

$3,000,000 debt (selling at par value).

Firm value (levered) = $9,000,000

Tax rate = 40%

Thank you.

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