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QUESTION 1 Fisher Company is currently an all equity firm. The firm has a cost of capital of 10.5 percent. Fisher is considering switching to

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QUESTION 1 Fisher Company is currently an all equity firm. The firm has a cost of capital of 10.5 percent. Fisher is considering switching to a debt-equity ratio of 0.60 with a pretax cost of debt of 7.4 percent. What will the firm's cost of equity be if it makes the switch? Ignore taxes. 13.57% 13.39% 13.25% 12.98% 12.36%

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