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You operate in a perfect capital market in which firms and individuals can borrow or lend as much as they like at 8% p.a. You

You operate in a perfect capital market in which firms and individuals can borrow or lend as much as they like at 8% p.a. You have currently invested in XYZ Ltd which is unlevered and generates a return of 14% p.a. on average. If XYZ restructured to a 50/50 mix of debt/equity, what return on their investment would equity holders require to invest?

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