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minimamimo is a firm with a cost of equity of 1 2 percent, a D / E ratio of 1 / 6 , and the

minimamimo is a firm with a cost of equity of 12 percent, a D/E ratio of 1/6, and the YTM on its bonds is 7.5 percent. The current risk-free rate is 3 percent. What is the current required rate of return on its assets and equity if the D/E ratio is changed to 1/3?

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