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Utah Sportswear has issued long-term bond with a market value of $100 million and an expected return of 4%. It has 10 million shares

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Utah Sportswear has issued long-term bond with a market value of $100 million and an expected return of 4%. It has 10 million shares outstanding trading for $10 each. At this price, the shares offer an expected return of 12%. Taxes are 21%. What is the company's cost of capital? 7.58% 8% 8.23% 8.76%

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