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Given the following information, what is XYZ's division cost of equity? A competitor to that division has a beta of 1.6 and a debt/equity ratio
Given the following information, what is XYZ's division cost of equity? A competitor to that division has a beta of 1.6 and a debt/equity ratio of 3. XYZ maintains a debt/equity ratio of 4 in all divisions. The risk-free rate is 8% The market required return is 14% Both companies have 21% marginal tax rates
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