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Morales Publishing's tax rate is 40mts beta is 0.8, and it uses no debt. However, the CFO is considering moving to a capital structure funded

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Morales Publishing's tax rate is 40mts beta is 0.8, and it uses no debt. However, the CFO is considering moving to a capital structure funded by debt. which produces a bets of 1.6. If the risk free rate is 3% and the market risk premium is 5m, by how much would the capital structure shift change the firm's cost of equity (in percent)

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