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GHX Corp. has 2 projects A and B. Each contributes 50% of the companys value. Project A has an asset beta of zero while project

GHX Corp. has 2 projects A and B. Each contributes 50% of the companys value. Project A has an asset beta of zero while project B has an expected return on assets of 14%. The company is financed equally by equity and riskless debt. What is the cost of equity for the firm? Ignore taxes.

Insufficient information

7%

14%

The risk-free rate

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