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The cost of equity for an unlevered firm is 10%. The firm's cost of debt is 5%. If the tax rate is 25%, what is
The cost of equity for an unlevered firm is 10%. The firm's cost of debt is 5%. If the tax rate is 25%, what is the firm's cost of equity if they increase their debt ratio to 30%?
10.0% | ||
8.5% | ||
11.6% | ||
12.7% |
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