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Question 4 3 pts An investor is interested in purchasing Company A. Company A is a full equity firm but its stocks are not publicly

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Question 4 3 pts An investor is interested in purchasing Company A. Company A is a full equity firm but its stocks are not publicly traded. Assume that capital markets are perfect and no taxes are paid. The investor requested you to calculate the cost of equity. After collecting data from multiple companies, you consider that only two companies are suitable comparable: Comparable 1 D/E -1, BD 0.0.BE = 1.8 . Comparable 1: 6 D/E-2,80 =0.5. BE = 2.1 The risk-free rate is 1% and the market risk premium is 8%. What is the cost of equity of Company A? Round final answer to four decimal places. DO NOT use percentage format

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