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Suppose you borrow $13,500 when financing a gym valued at $28,000. Assume that the unlevered cost of the gym is 14% and that the cost
Suppose you borrow $13,500 when financing a gym valued at $28,000. Assume that the unlevered cost of the gym is 14% and that the cost of debt is valued at 10%. What should be the cost of equity of your firm?
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