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Suppose Blank Company has only one project and an unlevered cost of equity of 8%. If the company borrows $10,000 at 5% to make the

Suppose Blank Company has only one project and an unlevered cost of equity of 8%. If the company borrows $10,000 at 5% to make the investment, what is the return to equity holders if demand is $45,000?

8.0%

8.95%

28.6%

38.0%

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