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The market value of Company T's equity is $15.0 million, and the market value of its risk-free debt is $5.0 million. If the required rate

  1. The market value of Company T's equity is $15.0 million, and the market value of
    its risk-free debt is $5.0 million. If the required rate of return on the equity is 20.0%
    and on the debt is 8.0%, calculate the company's cost of capital. (Assume no taxes)
    17.00%
  2. 20.00%
    8.10%
    9.30%

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