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A firm has total assets of $1,000 million. The firm just switch from all equity, to a levered firm by issuing $400 million of debt

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A firm has total assets of $1,000 million. The firm just switch from all equity, to a levered firm by issuing $400 million of debt and repurchasing share. The risk free rate is 5%. The required return to equity holders as an all equity firm, Ku, is 6.00%. As a firm with $400 million of debt the required return of equity holders, KL, is %. Your answer should have h2 decimal places. If your answer is 6.45%, key in 6.45)

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