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M&M Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company converts to a debt-equity ratio of 1.0. The interest

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M&M Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company converts to a debt-equity ratio of 1.0. The interest rate on the debt is 5.7 percent. Ignoring taxes, what is the company's new cost of equity? What is its new WACC

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