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Suppose that BHS currently has no debt and has an equity cost of capital of 10%. BHS is considering borrowinglunds at a cost of and

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Suppose that BHS currently has no debt and has an equity cost of capital of 10%. BHS is considering borrowinglunds at a cost of and using these funds to repurchase existing shares of stock. Assume perfect capital markets. If BHS bortows until they achieved a debt to value ratio of 20. What is BHS's levered cost of equity? B 1 93

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