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Suppose you borrow $850,000 when financing a coffee shop which is valued at $1,600,000. You expect to generate a cash flow of $2,350,000 at the
"Suppose you borrow $850,000 when financing a coffee shop which is valued at $1,600,000. You expect to generate a cash flow of $2,350,000 at the end of the year. The cost of debt is 6%. What is the cost of equity? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"
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