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Suppose you borrow $90000 when financing a coffee shop which is valued at $110000. Assume that the unlevered cost of capital for the coffee shop
Suppose you borrow $90000 when financing a coffee shop which is valued at $110000. Assume that the unlevered cost of capital for the coffee shop is 6.5% and that the cost of debt is valued at 5%. What should be the cost of equity of your firm?
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