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Suppose you borrow $8000 when financing a coffee shop which is valued at $30000. Assume that the unlevered cost equity of the coffee shop is

Suppose you borrow $8000 when financing a coffee shop which is valued at $30000. Assume that the unlevered cost equity of the coffee shop is 15% and that the cost of debt is valued at 5%.

1) What should be the cost of equity of your firm?

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