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QUESTION 1 The cost of equity for an unlevered firm is 10%. The firm's cost of debt is 5%. If the tax rate is 25%,

QUESTION 1 The cost of equity for an unlevered firm is 10%. The firm's cost of debt is 5%. If the tax rate is 25%, what is the firm's cost of equity if they increase their debt ratio to 30%? 12.7% 8.5% O 11.6% O 10.0%

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