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Merk is currently all-equity financed with a value of $56 million and cost of equity of 8%. Assume the market is perfect, what is the
Merk is currently all-equity financed with a value of $56 million and cost of equity of 8%. Assume the market is perfect, what is the new cost of equity for Merk, if its capital structure is changed to include $19 million of debt with a cost of debt of 3%? Answer in percent points and include four decimal places do not include the 'X'in your answer, e.g., 10.1234 would be entered if the answer was 10.1234%
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