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Kunitz Co. has no debt. Its cost of capital is 10.2 percent. Suppose Kunitz converts to a debt-equity ratio of 1. The interest rate on

Kunitz Co. has no debt. Its cost of capital is 10.2 percent. Suppose Kunitz converts to a debt-equity ratio of 1. The interest rate on the debt is 7.3 percent. Ignore taxes for this problem.

Requirement 1:

What is the company

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