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* Next period a firm will be worth $ 5 6 with 1 5 % probability, $ 8 5 with 5 3 % probability, and

*Next period a firm will be worth $56 with 15% probability, $85 with 53% probability, and $126 otherwise. The firm has one senior bond outstanding with a face value of $36 and one junior bond outstanding with a face value of $36. The senior bond has a promised return of 5%. The junior bond has a promised return of 16%. The firm's required return on assets is 12%. What is the firm's levered cost of equity? Give your answer in percentage to the nearest 0.1%.*Next period a firm will be worth $56 with 15% probability, $85 with 53% probability, and $126 otherwise. The firm has one senior bond outstanding with a face value of $36 and one junior bond outstanding with a face value of $36. The senior bond has a promised return of 5%. The junior bond has a promised return of 16%. The firm's required return on assets is 12%. What is the firm's levered cost of equity? Give your answer in percentage to the nearest 0.1%.

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