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Question 1 1 pts XYZ Corp. has a debt to equity ratio of 0.5, the firm's equity cost of capital is 10% and the firm
Question 1 1 pts XYZ Corp. has a debt to equity ratio of 0.5, the firm's equity cost of capital is 10% and the firm has risk-free debt with an interest rate of 5%. In perfect capital markets what will be the cost of capital of the firm's operating assets if XYZ changes its debt to equity ratio to 0.75? Enter your answer as a percent without the "%." Round your final answer to two decimals. Question 2 1 pts XYZ Corp. has a debt to equity ratio of 0.5, the firm's equity cost of capital is 10% and the firm has risk-free debt with an interest rate of 5%. In perfect capital markets what will be XYZ's cost equity capital if changes its debt to equity ratio to 0.75? Enter your answer as a percent without the "%." Round your final answer to two decimals
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