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If we assume that a firms market value of debt is $800, its market value of equity is $200, its cost of equity is 10%,
If we assume that a firms market value of debt is $800, its market value of equity is $200, its cost of equity is 10%, and its cost of debt is 5%, what is its asset cost of capital?
| A. | 9% | |
| B. | 10% | |
| C. | 6% | |
| D. | 8% |
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