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Use the following Information about MGD Corporation to answer the questions. Expected Return of the Market: 10% Risk Free Rate of Return: 2% Cost of

Use the following Information about MGD Corporation to answer the questions. Expected Return of the Market: 10% Risk Free Rate of Return: 2% Cost of Debt for MGD: 6% Tax Rate: 15% D/E Ratio = 0.5 What is the Cost of Equity for MGD Corporation if they have a Beta of 1.25?

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