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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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