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tax rate is 40% its beta is 1.20 and it uses no debt. The ceo is considering moving to a capital structure with 30% debt

tax rate is 40% its beta is 1.20 and it uses no debt. The ceo is considering moving to a capital structure with 30% debt 70% equity. RFR is 5% MRP 6% by how much would capital strcuture shift change the firms cost of equity

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