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Grady's Inc. has no debt but can borrow at 10 percent. The firm's WACC is currently 12% and the tax rate is 35%. a)What is

Grady's Inc. has no debt but can borrow at 10 percent. The firm's WACC is currently 12% and the tax rate is 35%. a)What is the firm's cost of equity? b) If the firm converts to 15% debt, what would the cost of equity be? Show procedure.

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